Dubai – Mubasher: Drake & Scull International (DSI) has said that its board of directors gave an approval to reduce the company’s capital by 50%, according to a statement released Tuesday.
The capital cut will be carried out “on a pro-rata basis of shares to extinguish accumulated losses” and facilitate raising new equity capital, DSI revealed.
This comes as part of the board’s capital restructure programme which will be done on two stages.
The second phase will involve raising AED 500 million in equity by issuing new shares to Tabarak Investment LLC, a strategic investor.
This will be executed provided that the first stage is approved by shareholders and the Securities and Commodities Authority (SCA) as well as successfully implemented, DSI highlighted.
The board intends to call for an annual general meeting (AGM) sometime in April 2017 to vote on the capital restructure and resolutions.
DSI’s capital currently amounts to AED 2.285 billion, divided on 2.285 billion shares, at par value AED 1 per share.
Earlier today, DSI reported turning to losses in the fourth quarter of 2016, with AED 489.61 million ($133.28 million), against profits of AED 12.645 million ($3.44 million) in Q4-15.
For the full-year 2016, DSI also posted AED 786.86 million in losses, down 16.2% from AED 938.82 million in 2015.
