Cairo – Mubasher: The board of directors of the Egyptian Chemical Industries (Kima) decided to enter into negotiations with lending banks to use the shares of Abu Qir Fertilizers Co and Delta Sugar to repay part of its debts.

The board also approved a study prepared by Beltone Financial and a memorandum submitted by the managing director concerning the reasons for a capital increase, according to a bourse disclosure on Thursday.

The board recommended to increase the authorised capital to EGP 7 billion from EGP 6 billion and the issued and paid-up capital to EGP 6.46 billion from EGP 4.46 billion.

The capital increase will be divided over 400 million shares at a nominal value of EGP 5 apiece as well as issuance expenses of EGP 0.05 to be financed from cash subscription by shareholders.

During fiscal year 2019/2020, Kima turned to net losses of EGP 1.35 billion, against net profits of EGP 32.33 million a year earlier, the modified unaudited financial results showed.