(MENAFN- The Peninsula) United Development Company (UDC), one of Qatar's leading public shareholding companies is expecting to issue convertible bonds worth QR1.072bn within the next two to three months, according to the company's Managing Director and President.
"We will tender for the approval from the Qatar Chamber of Commerce and Industry (QCCI). Once this is done, we will proceed immediately with the issuance of the bonds," Khalil P Sholy told reporters after the ccompany's annual ordinary and extraordinary general assembly meetings (AGM) which were held here yesterday evening.
The AGM adopted a motion on the issue of convertible bonds not exceeding QR1,072,500,000 or equivalent in foreign currency, in private subscription the conditions of which are to be determined by the Board of Directors, and authorizing the Board of Directors to take all required measures.
Sholy said part of the proceeds from the bonds will be allocated to expanding UDC's existing projects as it is diversifying its activities, in such areas as hospitality, real estate, insurance, fashion and the other part will be utilized to capture some of the opportunities that exist in the market and in the region. As for UDC's future plans, Sholy said, "Our focus will be in expanding globally now that we have been well established locally. We will start regionally first then go beyond that."
He added that this expansion covers a wide spectrum, whether it is in hospitality, fashion,infrastructure or real estate, the UDC - established 12 companies will be focusing on the current operations and in expanding them. "The mission of the company is always to identify and create business opportunities," he said.
The other motion that was adopted by UDC shareholders at their Extra-ordinary Meeting is the distribution of 26,812,500 bonus shares for the year ending December 31, 2010. This represents 20 percent of the company's capital, at a rate of two shares for every 10 shares held, in order to increase the Company's capital to QR1.608bn and amending the company's memorandum and articles of association accordingly and authorizing the Board of Directors to deal with the share fractions.
Speaking on the occasion, UDC Chairman Hussein Al-Fardan, said: "2010 was, in so many ways, a pivotal year for UDC, for Qatar and indeed for the global economy. UDC's performance and achievements continued to grow in both business and financial terms due to the hard work, diligence and passion of our employees, partners and associates. UDC continues to focus on transparency and responsible corporate governance."
"UDC has entered this new decade with renewed optimism. This will be in evidence throughout our company in 2011 as we complete new stages in our flagship development The Pearl-Qatar, embark on new business ventures, and continue to grow the presence and market share of our group companies."
By Nasser Al Harthy
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