Global shareholders approve KWD22.9mn cash distribution by capital reduction
Shareholders approved the Board of Director’s proposed case distribution of KWD22.9 million by capital reduction. The capital reduction will be implemented by cancelling 229,065,000 shares at the price of KWD0.100 and distributed cash to shareholders. The share cancellation will be applied pro-rata to the holdings of all shareholders excluding the Treasury Shares. On conclusion of the capital reduction, issued and paid-up capital of the company will stand around KWD 57 million with adequate liquidity to fund the company’s core fee business and will improve the return on equity and book value per share.
Shareholders also approved the transfer of 10% of the net profit to the voluntary reserve account amounting to KWD 353,115 in addition to amendments to select articles of the Articles of Association and Memorandum of Association of the Company to reflect the Companies Law No. 1 of 2016.
The Company reported revenues of KWD14.7 million and net profits of KWD3.5 million in 2016 despite a challenging macro-economic environment and geo-political uncertainties.
On this occasion, Al-Halabi thanked the company’s shareholders and clients for their trust and continuous support assuring all stakeholders of the company’s commitment to continue creating value especially in these challenging times.
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