Kuwait Foundry nods to 151 fils/shr dividend, capital cut

The ordinary general meeting (OGM) approved the board’s recommendation of distributing KWD 10.92 million worth of cash dividend or 150 fils per share to the entitled shareholders, after calculating the capital-reduction amount, according to a bourse statement on Sunday.

Paying the dividends will be executed through reducing the compulsory reserve to account for 50% of the capital following its cut from KWD 5.46 million to KWD 3.62 million. Kuwait Foundry will distribute the reduction amount of KWD 1.85 million, in addition to KWD 9.07 million worth of issue premium.

As for the extraordinary general meeting (EGM), the shareholders approved a capital reduction of 53% from KWD 15.39 million to KWD 7.23 million, the reduced amount of KWD 8.16 million will be distributed on the shareholders by cancelling 81.556 million shares at a par value of 100 fils each.

Therefore, the EGM has modified articles in the association and statute upon which the capital will become KWD 7.23 million from 15.39 million, and the number of shares will stand at 72.33 million instead of 153.88 million.

It is noteworthy that during the first quarter of 2019, Kuwait Foundry achieved a growth of 10% in profits to about KWD 508,900 when compared to nearly KWD 464,700 in Q1-18.