GFH shareholders approve treasury share buyback

MANAMA: Shareholders of GFH Financial Group (GFH) have authorised the repurchase of group treasury shares to support further expansion and growth and approved the continued listing on Boursa Kuwait.

The announcement follows ordinary and extraordinary general meetings held yesterday with 40.37 per cent quorum.

Led by the chief executive and board member Hisham Alrayes, the assembly approved the continuation of listing the group’s shares on Boursa Kuwait as well as the repurchase of the group’s treasury shares, up to a maximum of 10pc of total issued shares, for a number of purposes, including the acquisition of outstanding shares of Khaleeji Commercial Bank (KHCB), pursuant to an acquisition offer, and strategic expansion in financial and investment institutions.

The meeting also saw shareholders authorise the board of directors to take all necessary actions to implement the above activities.

After discussions, the board was given approval to appoint a market maker in all markets in which the group’s shares are listed.

It has been authorised to undertake the selection, determine the fees, the term of appointment and other related matters, subject to approval from the regulatory authorities.

The board’s recommendation to issue sukuk in the amount of $300 million in the form of additional perpetual tier 1 capital, has also been approved.

Shareholders also authorised the board or whomever it appoints to take all necessary action to undertake the issuance and related matters.

Commenting, Mr Alrayes said, “We’re pleased with shareholder approval for the recommendations made by the board. The decisions taken will support the group’s activities focused on enhancing shareholder value, profitability and growth. We intend to soon takeover full ownership of KHCB, a move that will add strong additional income to GFH’s recurring income and lines of businesses especially after KHCB’s successful restructuring last year.”



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