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.
