Dubai – Mubasher: Marka’s new strategy entails that the firm would not enter into any deal that exceeds 10% of its capital, chairman Khalid bin Kalban has revealed.
Speaking to CNBC channel, bin Kalban explained that the firm will begin implementing the decisions taken at Marka’s general meeting in the coming period, noting that Marka was looking for a strategic investor.
As for the company’s capital hike, the chairman said that the remaining sum, which has not been subscribed into yet, will be offered to the strategic investor.
Marka’s restructure must be swift, bin Kalban stressed, noting that the sum allocated for the capital top-up will be used to expand and restructure Reem Al Bawadi, which is Marka’s largest investment.
Reem Al Bawadi currently has branches in Bahrain and Saudi Arabia, the top official told the newspaper, indicating that a new branch will be opened in Oman soon.
Bin Kalban previously said that the Reem Al Bawadi investment was not the cause of Marka’s losses, rather it was the company’s high-value investments entered into during the previous board’s tenor.
https://english.mubasher.info/news/3374408/Reem-Al-Bawadi-not-the-cause-of-Marka-s-losses-Chairman
In 2016, Marka fully-acquired restaurant chain Reem Al Bawadi for AED 315 million.
The move to raise Marka’s capital has become a necessity, the top official said recently, citing the company’s accumulated losses, which have come close to the total value of Marka’s capital.
Marka last reported narrowing its losses to AED 47.59 million in the first nine months of 2018 from AED 198.87 million in the same period of 2017.
https://english.mubasher.info/markets/DFM/stocks/MARKA
https://english.mubasher.info/news/3374408/Reem-Al-Bawadi-not-the-cause-of-Marka-s-losses-Chairman
