(MENAFN - Arab Times) Global Investment House (Global) announces that it will hold an Extraordinary General Meeting on Sunday, Dec 2, 2012, to discuss three items on the agenda related to the proposed restructuring plan approved by the company's general assembly held on Sept 2, 2012.
One of those three items is to authorize the Board of Directors to delist the company from Kuwait Stock Exchange (KSE) if the continuity of listing represents an obstacle to the implementation of the proposed restructuring plan.
Global has spared no efforts to implement the proposed restructuring plan while retaining its listing on KSE. However since it is unable to obtain an exemption from the Capital Markets Authority to rules of the mandatory offer, it is inevitable for the company to take measures such as the delisting from KSE in order to preserve the public interest of the company and safeguard the rights of its existing shareholders.
It is worth noting that the following proactive steps have been taken to avoid the above:
First: the special purpose vehicle of which the total economic benefits is owned by the creditors, and which will own 70% of the share capital of Global, has submitted a request to the CMA to obtain an exemption from the mandatory offer rules. Second: Global followed that with a letter addressed to the CMA highlighting the benefits of such an exemption on the existing shareholders and the public interest.
Third: the submission by a large group of shareholders of a written appeal to the CMA requesting the CMA to grant such an exemption to preserve their interests.
Global would like to assure its shareholders that the implementation of the restructuring plan is dependent on the exemption granted by the CMA from the mandatory offer rules to the special purpose vehicle that shall subscribe to Global's capital increase, such exemption being permissible in accordance with the last paragraph of Article (74) of Law No. 7 for the year 2010 on the establishment of the Capital Markets Authority (CMA) and the last paragraph of Article (271) of the Executive Regulations which allow the CMA to provide an exemption from the terms and conditions of the mandatory offer rules stipulated under the law if it was in the public interest and the interest of the existing shareholders of the acquired company.
Until the time of issuing this announcement, Global has not obtained the required exemption from the CMA. Therefore, it has become imperative for the company to recommend to the General Assembly to authorize the Board of Directors to take the necessary legal procedures to delist the company from Kuwait Stock Exchange if deemed necessary to preserve the interests of the Company and its shareholders' equity, as the terms and conditions of the mandatory offer under the Capital Markets law No. 7 for the year 2010 and its executive regulations apply only to companies listed on KSE.