Dubai – Mubasher: The Reem Al Bawadi acquisition is not the main cause of Marka’s continued losses, chairman Khalid bin Kalban told local media, indicating that the high-value deals Marka entered into during the previous board’s tenor was the cause.
Speaking to Emarat Al Youm newspaper, bin Kalban revealed that Marka was negotiating the entrance of a strategic investor, noting that this would be carried out after the company’s upcoming shareholder meeting discusses and approves a decision to cut capital then re-increase it once that strategic investor comes in.
We are in talks over the terms of the capital re-hike subscription details, he added.
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 told the newspaper, citing the company’s accumulated losses, which have neared the total value of Marka’s capital.
The general meeting will discuss either continuing with the company’s business and reducing capital or objecting to the decisions and cancelling the company.
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.
