The Board of Directors of Qatar Navigation (Milaha) Q.S.C. met on May 28, 2012 to discuss the recommended rights issue, which was formally announced on March 25, 2012, and raised to the General Assembly at the company’s EGM on April 15, 2012.
As part of the Extraordinary Meeting held in April, the General Assembly approved the Board of Directors’ recommendation to increase the company’s paid-up capital by 20%, from QR 1,145,252,000 to QR 1,374,302,400, through the issuance of 22,905,040 new shares offered to the company’s existing shareholders. The General Assembly authorised the Board of Directors to consult an investment bank or independent expert to review the recommended issue price of QR 57 per share, including the nominal value of QR 10 per share and a premium of QR 47, and to confirm the reasonableness of the suggested price.
The Board consulted two independent experts, who provided both valuations as well as benchmarking of the discount. Both independent experts confirmed that the suggested price of QR 57 is reasonable.
An official announcement will be made providing information to existing shareholders on the subscription dates and other terms and conditions, upon obtaining final approval from the concerned authorities. The rights issue is expected to take place in the 4thquarter of 2012.
The objective of the capital increase is to fund Milaha’s growth plans in its core businesses in the coming years.