The extraordinary general meeting of Egyptian Chemical Industries Co. (KIMA) approved on Monday, December 8 the increase of issued and paid-in capital that will be financed from FY13/14 dividend.
The company has received earlier the approval of the Egyptian Exchange (EGX) on proceeding with an increase of issued capital through bonus share distribution.
The company’s board approved a capital increase from EGP 1.890 billion to EGP 1.970 billion, which will be financed from FY13/14 earnings.
The EGP 80.142 million increase will be divided into 16 million shares at EGP 5 par value each.
The company’s ordinary general meeting approved on Sunday, October 19 the board reports, as well as financial statements for the fiscal year that ended on June 30, 2014.
Shareholders decided to withhold cash dividend and use it in the company’s capital increase, as per rules issued by the Egyptian Financial Supervisory Authority (EFSA).
The chemical producer posted EGP 107.147 million net profit for FY13/14, with a decline by 33% compared with EGP 159.681 million a year earlier.
It had posted EGP 56.726 million net profit for the nine-month period that ended on March 31, 2014, compared with EGP 135.255 million in the same period a year ago.

Photo Credit: Arabianeye-Reuters