GFH approves distribution of $42 million dividend

MANAMA: Shareholders of GFH Financial Group have approved the distribution of a total dividend of $42 million for 2020.

An announcement after the annual and extraordinary general meetings yesterday said this included cash profits for all ordinary shares, save for treasury shares, at 1.86 per cent of the nominal value of the share totalling $17m and bonus shares for all ordinary shares at 2.56pc of the nominal value of the share (one share for each 39.03 shares owned) equivalent to $25m.

Also approved was the board of directors’ report on the group’s business activities for the 2020 financial year, the reappointment of external auditors for 2021 and the board’s recommendation for voluntary delisting of shares from the Kuwait bourse.

The EGM saw shareholders approve the reduction of the group’s capital by the cancelling of treasury shares up to a maximum of 141,335,000 worth up to $37.45m.

This is the result of the cancellation of the group’s market maker agreement and subject to the approval of the competent regulatory authorities.

Shareholders also approved an increase in the group’s capital from $975.64m to $1 billion as a result of the addition of bonus shares amounting to 94,339,623 subject to the approval of the Central Bank of Bahrain.

GFH chief executive Hisham Alrayes said: “We are delighted to see shareholders approve the distribution of another solid dividend despite the unprecedented events that characterised 2020 financial year and the exceptionally difficult operating climate created by the pandemic. Our strong foundations, sound strategy and success in the diversification of our business and income streams, nevertheless, allowed us to effectively navigate the challenges of 2020. We are proud of GFH’s ability to continue to demonstrate our resilience and to create and deliver value no matter how challenging the circumstances. I look forward to building on the momentum gained over the past year and the strides we have already made in 2021.”

Source: https://www.gdnonline.com/Details/941267