Ras Al Khaimah: The extraordinary annual general meeting of the
Gulf Pharmaceutical Industries (Julphar) yesterday failed to secure
the approval of its shareholders to increase its capital to Dh1
billion by offering a rights issue of 537,670,000 shares at the rate
of Dh2.50 per share.
Julphar has received approval from the Ministry of Economy and
Planning to increase its capital to Dh1 billion through a rights
issue. But the shareholders were unhappy about the premium of Dh1.50
per share.
Following a prolonged debate, the assembly decided to postpone
the meeting to May 10 and to consider the session open until that
date to give the board of directors a chance to persuade the
shareholders to approve the capital increase.
The meeting also approved a 20 per cent dividend.
Shaikh Faisal Bin Saqr Al Qasimi, Chairman of Julphar, said the
company earned Dh116 million net profit for the year ended December
31, 2005, an increase of 71.6 per cent over the previous year.
He said the money which will be generated by the capital increase
will be used for expansion.
The chairman also said that the proceedes will be used to set up
an insulin factory which will require an investment of Dh185
million.
