(MENAFN - Qatar News Agency) Milaha's (Qatar Navigation) rights issue to increase the company's paid-up by 20% is likely to open in the fourth quarter of this year, according to a Qatar Exchange news bulletin Tuesday.
Milaha's newly elected Board of Directors met here Monday to discuss the recommended rights issue which was formally announced earlier this year March 25 and raised to the General Assembly at the company's EGM on April 15.
At the Extraordinary Meeting held in April, the General Assembly had 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 rights issue 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 a valuation as well as a benchmarking of the discount. Both independent experts confirmed that the suggested price was 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 fourth quarter of 2012. The objective of the capital increase is to fund Milaha s growth plans in its core businesses in the coming years.