Zad to raise capital with a rights issue
| Zad to raise capital with a rights issue
Zad Holding Co. - ZHCD 74.500.000.00% 31/03/2011 00:00 AST Share| Top Related Companies
Zad Holding, which is in the process of acquiring National Foods Company, is increasing its capital by 30% through a rights issue to garner as much as QR106mn to part fund its expansion owing to the economic growth and development in Qatar. The rights issue, which has been priced at QR35 a share (including a premium of QR25), will hit the market on April 3 and run until April 17. The company, which is also venturing into a Greenfield poultry project, has got the clearances from authorities to issue 3.02mn new ordinary shares to existing shareholders. Its capital base stood at QR100.62mn as on December 31, 2010. In this regard, Zad Holding (formerly Qatar Flour Mills) has entered into agreement with Masraf Al Rayan, which has been mandated as the manager to the subscription. Zad Holding board member Sheikh Thamer bin Mohamed bin Jaber al-Thani said it “decided to increase the capital in view of the economic growth and development witnessed in Qatar”, asserting the company’s keenness in benefiting from and contributing to such growth through ongoing and prudent expansions of its businesses. “Our partnership with Zad Holding is aligned with our constant support to national Qatari companies in an attempt to provide them with the best financial solutions that help them extend their businesses and enhance their financial positions,” according to Adel Mustafawi, Group CEO of Masraf Al Rayan. He said the company’s rights issue came at a time to assure the ability and readiness of the Qatari market to accommodate and launch this type of financial and investment transactions. Zad Holding CEO Tarique Mohamad had said last year announced the acquisition of National Foods Company, which is into meat products such as burger, meat balls and nuggets. It had appointed KPMG as advisors to undertake due diligence. The proposed acquisition, according to him, fit well within the company’s strategy to grow and diversify. Arab News Profile: Zad Holding Co. (ZHCD) |
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