Business | General
Gulf Pharmaceutical Industries votes to boost capital by Dh1b
Shareholders of Gulf Pharmaceutical Industries (Julphar) eventually approve 537.6m shares issued at Dh1.75 each to increase the company's capital to Dh1 billion.
- By Nasouh Nazzal, Staff Reporter
- Published: 00:00 May 11, 2006
Ras Al Khaimah: Gulf Pharmaceutical Industries (Julphar) secured yesterday the approval of shareholders to increase the company's capital to Dh1 billion by issuing 537.6 million shares at Dh1.75 each.
Julphar earlier secured approval from the Ministry of Economy and Planning to increase its capital of the company.
During the first extraordinary meeting at the beginning of last year the shareholders were extremely reluctant about the Dh1 per value plus Dh1.50 towards premium and the board of directors failed to secure approval.
The assembly decided following prolonged negotiations between the board of directors and the shareholders to postpone the meeting and considered the session open till yesterday to give the company's board of directors the chance to persuade key shareholders individually.
The shareholders in the first meeting approved the increase in the company's capital to Dh1 billion but demanded that it be done by distributing free bonus shares without having to pay for the rights shares.
The board of directors held extensive meetings with the shareholders and eventually secured their approval.
The board of directors earlier recommended an increase in the company's capital to Dh1 billion by issuing shares at Dh2.50 per share (Dh1 per value plus Dh1.50 premium) and a 20 per cent share dividend.
The share dividend was approved by the earlier assembly but the issue of the rights issue was postponed.
Background: Where the money will go
Shaikh Faisal Bin Saqr Al Qasimi, Chairman of the Board of Julphar, said the shares of the company in the GCC markets have been increased to $36 million this year, an increase of 50 per cent over the $24 million of the previous year.
He said the money generated by the capital increase will be used to set up new investments.
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