KFIC - Annual General Shareholder Meeting Approves Capital Reorganization and RIghts Offering

KFIC published the results of its shareholders OGM held 16 May.

1. Agreement not to distribute dividends for Fiscal 2009.
2. Recapitalization by extinguishing 2009 losses of KD25,314,775 by utilizing General Reserves of KD6,371,986, Legal Reserves of KD8,948,771, and Capital in Excess of Par KD2,210,849.  The difference will be made up by reducing Paid in Capital from KD41,930,970 to 34,147,801.
3. An increase in capital of KD20,000,000 by issuing 200,000.000 shares at KD0.100 per share by way of a priority rights issue.   This allows existing shareholders the absolute right to buy enough shares in the Rights Offering to maintain their respective percentage ownership of the Company.
4. Election of a new board for a three year term.

The board is composed of: 

1. Saleh Yacoub Yousef Al-Humaidi
2. Riham Fuad Mohammad Al-Ghanim
3. Mahmoud Fouad Mohammad Al-Ghanim
4. Tariq Mishari AlBahar
5. Mahmoud Emam Yaseen Owais
6. Abdulmohsen Yagoub Yousef Al-Humaidi
7. Fadwa Yacoub Yousef Al-Humaidi

This is pretty much the old Board except that Tariq appears to have replaced Wael Jassim Al-Sagar.

للشركة الكويتية للتمويل والاستثمار ( كفيك) قد انعقدت يوم الاربعاء ‏
الموافق 16-6-2010 واقرت الجمعيه العمومية بما يلي :‏
ِ1- عدم توزيع ارباح عن السنه المالية المنتهية في 31-12-2009 ‏
ِ2- الموافقة علي اطفاء الخسائر المرحله للعام 2009 بمبلغ 25.314.775 د.ك ‏
وذلك باطفاء رصيد الاحتياطي العام بمبلغ 6.371.986 د.ك والاحتياطي القانوني
بمبلغ 8.948.771 د.ك وعلاوة الاصدار بمبلغ 2.210.849 د. ك وتخفيض راس
المال من 41.930.970 د.ك الي 34.147.801 د.ك بمقدار الخسائر المتراكمة بعد
اطفائها من الاحتياطيات وعلاوة الاصدار والبالغه مبلغ وقدره 7.783.169 د.ك ‏
ِ3- الموافقة علي زيادة رأ س  مال الشركة من 34.147.801 د.ك الي ‏
ِ54.147.801 د.ك وذلك عن طريق طرح عدد 200.000.000 سهم للاكتتاب بقيمة
اسميه قدرها 100 فلس كويتى نقدا ودفعه واحدة وذلك للمساهمين المقيدين بسجلات
الشركة في نهاية اليوم السابق لبدء الاكتتاب في زيادة رأس المال ويكون لكل ‏
مساهم الاولويه بالاكتتاب بحصة من الاسهم الجديدة ومتناسبة مع عدد اسمهه .‏
ِ4- كما تم انتخاب اعضاء مجلس ادارة جدد للثلاث سنوات القادمة كما يلي :‏
السيد - صالح يعقوب يوسف الحميضي ‏
السيدة - رهام قؤاد محمد الغانم
السيد - محمود فؤاد محمد الغانم
السيد - طارق مشاري البحر
السيد - محمود امام ياسين عويس
السيد - عبد المحسن يعقوب يوسف الحميضي ‏
السيدة - فدوي يعقوب يوسف الحميضي ‏
وعليه سيتم تداول سهم الشركة بعد تخفيض رأس المال اعتبارا من اليوم الخميس ‏
الموافق 17-6-2010 ‏

KFIC: Sana Juma Resigns as CEO

KFIC announced on the DFM today that its CEO Sana Alaa AdDin Tawfiq Juma had resigned effective 13 June 2010.  No word on her replacement.   There doesn't appear to be an announcement on the KSE.

You'll recall from an earlier post that AlQabas had predicted her imminent departure.  You can access other posts on this Company by using the label KFIC to search.

A helpful reader has pointed out in the comments below - that Ms. Juma also resigned from Kuwait International Bank's Board due to insufficient shares in KIB to serve as a director.

KFIC - Yet More Details on KD145 Million Rescheduling

KFIC issued another press release today on the Kuwait Stock Exchange - text below Arabic only as usual.

Key points:

There will be an ordinary general meeting of shareholders on 16 June to approve an increase in capital by KD20 million (200 million new shares at KD0.100 each).   This will take capital to KD54,147,801 after an earlier decrease (probably the capitalization of losses) to KD34,147,801.

The first principal payment of KD6,783,000 represents the following:

1. KD2,000,000 on Tranche 1.
2. KD3,813,000 on Tranche 3.
3. KD 970,000 on Tranche 4.

[8:43:39]  ِ.ايضاح من (كفيك) بخصوص بعض نقاط اعادة الهيكلة ‏
يعلن سوق الكويت للاوراق المالية عطفا على اعلانه السابق بتاريخ 08-06-2010 ‏
والخاص بالشركة الكويتية للتمويل والاستثمار (كفيك) لاعادة جدولة جميع ‏
مديونيات الشركة ،تفيد الشركة بان زيادة راس المال المذكورة فى بنود اعادة ‏
الهيكلة هى نفسها التي اوصى بها مجلس ادارة الشركة بتاريخ 11-05-2010 ‏
للجمعية العمومية والتي ستنعقد يوم 16-06-2010 بزيادة راسمال الشركة ‏
بعد التخفيض من 34,147,801 د.ك الى 54,147,801 د.ك وذلك باصدار ‏
ِ200,000,000 سهم جديد بسعر اكتتاب 100 فلس ،ما يعادل مبلغ وقدره ‏
ِ20,000,000 د.ك .‏
وقد تم الانتهاء من التوقيع على اعادة الجدولة بتاريخ 06-06-2010 ،
وقامت  الشركة بسداد مبلغ وقدره 6,783,000 د.ك وذلك على النحو ‏
التالي :‏
ِ1- 2,000,000 د.ك فقط يمثل القسط الاول من الشريحة الاولى.‏
ِ2-3,813,000 د.ك فقط يمثل كامل الشريحة الثالثة .‏
ِ3- 970,000 د.ك يمثل القسط الاول من الشريحة الرابعة .‏
وافادت الشركة بانها سوف تقوم بموافاة ادارة السوق باخر المستجدات ‏
فى حينها .‏

KFIC - Details on KD 145 Million Debt Rescheduling

KFIC issued a press release on the KSE early this morning (copy below, as usual Arabic only) with details of its rescheduling.

Here's a quick translation.

All outstanding loans and facilities are being converted into a single loan.
 

The loan is secured by all the assets of KFIC and is divided into 4 Tranches.

1. Tranche 1:  KD64 million due in quarterly installments over five years with final maturity 31 December 2014.  Secured by the finance receivables of the Company.
2. Tranche 2:  KD71.467 million secured by the Company's listed and unlisted securities portfolio.  Repaid as assets are sold with final maturity no later than 31 December 2012.
3. Tranche 3:  KD3.813 million due on signing.
4. Tranche 4:  KD5.720 million quarterly installments due in the next 1.5 years.

[8:48:49]  ِ.ايضاح من (كفيك) بخصوص اعادة هيكلة ديون الشركة ‏
يعلن سوق الكويت للاوراق المالية بان الشركة الكويتية للتمويل والاستثمار ‏
ِ(كفيك) افادت بانها قامت باعادة جدولة جميع مديونياتها والبالغ قيمتها 145 ‏
مليون د.ك الى قرض واحد مجمع ،حيث تم التوصل بين كلا من الشركة ‏
والبنوك المقرضة (المحلية والاجنبية) الى الشروط النهائية للجدولة وذلك ‏
على النحو التالي: ‏
ِ1- تحويل كافة القروض القائمة الى قرض واحد مجمع .‏
ِ2-يكون القرض مضمون بكامل موجودات المجموعة (الشركة الكويتية ‏
للتمويل والاستثمار وشركاتها التابعة )  ‏
ِ3-زيادة راسمال الشركة .‏
ِ4- يتم تقسيم اجمالي مديونية الشركة الكويتية للتمويل والاستثمار الى اربعة ‏
شرائح كالتالي: ‏
ِ- الشريحة الاولى :اجمالي قيمة 64,000,000 د.ك على ان يتم السداد على فترة ‏
ِ5 سنوات تنتهي فى 31-12-2014 بدفعات ربع سنوية تبدا من تاريخ توقيع العقد ‏
مضمونة بمحفظة مدينو التمويل للشركة .‏
ِ-الشريحة الثانية :باجمالي قيمة 71,467,000 د.ك مضمونة بجميع ‏استثمارات ‏
الشركة المدرجة وغير المدرجة على ان يتم السداد عند بيع اى اصل من اصول ‏
الشركة بمدة اقصاها 31-12-2012.‏
ِ-الشريحة الثالثة :باجمالي قيمة 3,813,000 د.ك يتم سدادها عند التوقيع .‏
ِ-الشريحة الرابعة :باجمالي قيمة 5,720,000 د.ك يتم سدادها فى خلال سنة ونصف ‏
من تاريخ التوقيع على العقد بدفعات ربع سنوية ومضمونة ايضا بجميع استثمارات ‏
الشركة .‏

KFIC Announces Signing of KD145 Million Rescheduling

Kuwait Finance and Investment Company, KSC ("KFIC") announced that it had signed a rescheduling agreement with all of its local and foreign lenders  - 22 in all.  The deal has a five year term ending 31 December 2014.  It was reached after 18 months of negotiation with lenders.

Both Al Watan and AlQabas have reports.  From the similarity of wording, it's clear the source was a  KFIC release.  As discussed below, AlQ has am "extra" bit:  some speculation on management changes.

Some of what I consider noteworthy points from the articles.

1. National Bank of Kuwait and AlAhli United Bank acted as lead banks in the restructuring process.
2. Ernst and Young undertook a valuation of the Company's assets and pronounced their fair value at 15% more than book value.  
3. Neither newspaper mentions a "headline" from KFIC's press release - that they serviced interest on the debts during the 18 month restructuring negotiations.  Perhaps this is well known in Kuwait?

AlQ continues with some speculation on possible changes in management.  Sana  Juma has supposedly resigned as CEO (earlier she had been at Gulf Bank) and been replaced by Riham AlGhanim, who is on the Board.  Ghadir Al Ateeqi, Head of Human Resources, is also reported to have resigned. 

You'll recall that KFIC lost KD13.8 million in 2008 and KD10.9 million in 2009.  The articles refer to 1Q10 results. These were operating income of KD4.7 million and net profit of some KD1.1 million. (Not mentioned in the two press reports cited above).