KGLPI launches PPO of 150 mln new shares Proposed KD 15m capital increase to expand equity capital base: Baghli

KUWAIT CITY, March 2: KGL Ports International Warehousing and Transport Company KSCC, (KGLPI) yesterday announced the launch of the Private Placement Offering of 150 million new shares during a press conference held at the KGLPI Head Office in Shuwaikh.
KGLPI solicits participation in the subscription of 150 million new shares at 100 Kuwaiti Fils per share from its existing shareholders through a Rights Issue offering, while unsubscribed shares will be offered, after the specified period of placement, to the existing strategic investors at 105 Kuwaiti Fils per Share inclusive of 5 Kuwaiti Fils per share placement fee for a period open from 2 March 2010 till 16 March 2010.
“The proposed KD 15 million capital increase will expand our equity capital base from KD 12 million to KD 27 million,” disclosed KGLPI Chairman Fadel A. Al Baghli. He cited that they foresee a substantial increase in sea port traffic in the forthcoming quarters, boosted by the inevitable rebound of infrastructure development and trade activities as global and regional markets transition towards a period of economic revival.

“The capital increase will be utilized for funding the completion of the Damietta Port project in Egypt which is planned to commence operations in September 2011, as well as for restructuring of some of the existing debts, thereby renderingus better equipped to capitalize on opportunities that create sustainable future earnings and growth,” he pointed out.
Al Baghli outlined that the private placement offering will enable shareholders to participate and benefit from KGLPI’s objective to further augment its presence as a premier and specialized company in the field of port operation and management in MENA region by offering premium services in the port management industry, thereby subsequently aiming to engender a substantial yield of returns on investment for its patrons.
Al Baghli explained that investment in the company represents an investment in one of the vital operational defensive sectors in the region under the umbrella of a specialized company which has a solid track record and over 40 years of experience. “The investors are expected to achieve essential returns on medium term basis, especially after operations commenced in Damietta, Egypt,” he stated.
Among the most remarkable activities carried out by the company are the operation and management of the container terminal at Shuaiba Port in Kuwait, and the Company also designed, constructed, operated, and currently manages the container terminal at Saqer Port in the Emirate of Ras Al Khaimah. tn Egypt, KGLPI, through its partnership with reputable, international shipping lines and the Damietta Port Authority (DPA), is in the final stages of constructing major container terminal within Damietta, Egypt.
As for the company future plans, KGLPI aims for an exit strategy through future listing on the Kuwait Stock Exchange (KSE) or on Dubai International Financial Exchange (“DIFX”) subject to fulfilling all listing requirements, or enter into a strategic exit in favor of a company specialized in private equity advisory or to a company actually existing in this sector or to a regional competitive entity.
The company is an associate of Kuwait Gulf Link Holding Company (KGLH), which in turn, is fully owned by Kuwait and Gulf Link Transport Company (KGL), KGLPI’s core business practice covers the development, operations, and management of container terminals and Roll-On Roll-Off (RORO) operations across sea ports. At this stage, KGLPI is considered as the terminal manager and operator of the KGL group that took over all the related activities of KGL in the areas of port management and port operation.

By: Rena Sadeghi

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