News

6 September 2018

Global shareholders approve KWD7.5 million cash distribution to shareholders through capital reduction

Global held today its Extra-Ordinary General Meeting to discuss the board of directors’ recommendation to distribute KWD7.5 million in cash to shareholders through capital reduction.

Shareholders approved the reduction of authorized, issued and paid-up capital from KWD57 million to KWD49.5 million by cancelling 75 million shares, around 13.5% of shareholders holdings (excluding treasury shares). Shareholders will be paid KWD0.100 cash for each share cancelled.

 

On conclusion of the capital reduction, the authorized, issued and fully paid share capital of the Parent Company will be KWD 49.5 million with adequate capital and liquidity to fund its core fee business. The capital reduction would also improve the return on equity and book value per share. On a proforma basis, the book value per share would increase from KWD0.126 as at 30 June 2018 to KWD0.130.

 

Sulaiman Mohammed Al-Rubaie, Chief Executive Officer, commented: “Good operating performance, excellent capital structure and highly liquid asset composition have facilitated the Board's decision to recommend this cash distribution, which comes for the second consecutive year following similar cash distribution of KWD22.9 million last year.”

 

He added: “With healthy liquidity and no debt, Global remains one of the few companies in the regional financial sector that truly have a clean balance sheet.”

 

Post these distributions, the total cash distributions to shareholders since 2015 will increase to KWD41 million, thanks to the quality of revenues and the company's consistent positive performance resulting from the effective implementation of its fee business driven strategy.

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