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GFC hikes capital by 100 pct

KUWAIT CITY : Gulf Franchising Holding Company (GFC) on Wednesday increased its capital by 100 percent after its shareholders approved the move during the second ordinary Annual General Assembly held at the Ministry of Commerce building. The company will float 118,300,600 shares with nominal value of 100 fils per share plus an additional issuance charge of 90 fils, thus increasing its capital from KD 118,300,600 to KD 23,660,120. The company intends to raise the amount by inviting new strategic shareholders and will ask its current shareholders to waive off their right in this issue.

Liquidity
Board Chairman and Managing Director of GFC , Ahmed Saadoun Al-Yaqoub, said the increase will provide liquidity to help implement many projects in and out of Kuwait, in addition to providing support to expand financial and real estate investment portfolios of GFC . He added that the increment will help in enabling the company to achieve a balanced development in various sectors, including the restaurants sector which will witness the opening of more than 10 restaurants during the next few years.

Al-Yaqoub also underlined the contribution of business expansion and real estate investment to GFC 's financial progress, adding that real estate investments hold high priority in the company's corporate strategy. GFC will continue to concentrate on regional real estate investment opportunities in view of the high growth potential witnessed by the sector in recent times. Attributing sustainable growth to strong local expansion strategy and business acumen with hawk's eye for high-potential opportunities in the franchising sector, Al-Yaqoub added, "our strong financial indicators in 2007 are reflective of our prudent investment and risk management capabilities as well as the confidence that our partners and shareholders have vested in us."
He added "we foresee a sustained growth throughout 2008 driven by local and regional expansions across the retail and restaurant segments. This will include the opening of 12 new retail stores in Kuwait and Dubai, in addition to signing new business deals which will add to the current portfolio that already boasts of Adolfo Dominguez, Lanidor, Laltra Moda, Laurel and Marc Cain."

GFC international lifestyle brands such as Laltra Moda, Lanidor, Laurel and Adolfo Dominguez have secured substantial brand recall. The company also witnessed key development across business fronts in 2007, which include: the listing of Bareeq holding Company at the parallel stock exchange market which raised GFC 's share value threefold as well as resulted in outstanding returns from the subsequent sale of Bareeq; significant operational advancements for Pitman Trading Center, Computer Troubleshooters and Kwik Kopy as well as strategically planning the Casual and Financial Fine-dining Restaurants concept that will unfold in 2008; establishment of a new company in Dubai to manage the development of GFC 's retail and restaurant businesses in the region.

Furthermore, Al-Yaqoub stressed the importance of the negotiations that GFC is currently carrying out with a group of Asian companies to enter in the food and hotel sector. The company's future expansion, however, will not be limited only to the restaurants sector. It is expected to distribute its future investments in various tools, products, finance, real estate in and out Kuwait which will basically help to achieve the targeted objectives and achieve best returns for shareholders.

By Abubakar A. Ibrahim

© Arab Times 2008

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