Al Meera: rights to boost capital

The board of Al Meera Consumer Goods Company, a leading retail and distribution company in Qatar, resolved during its board of directors’ meeting held recently to request a call for an extraordinary general meeting (EGM) to discuss and endorse the proposal to boost the company’s capital through a rights issue equal to 100 percent of the current total shares to the shareholders at the rights price of QR10 per share plus a premium of QR85 per share, said a company press release on Saturday. According to the press release, the EGM is also expected to endorse the amendment of the clause number 14 of the Articles of Association that state in the second part that, “Shares of any shareholders shall not exceed 2 percent of the total capital shares except for the government of the State of Qatar,” to read as follows: “Shares of any shareholders shall not exceed 5 percent of the total capital shares except for the government of the State of Qatar.” In addition, the EGM will also approve the amendment of clause number 28 of the Articles of Association which states that, “The members of the board of directors shall be elected for a period of three years and can be re-elected, except the government of the State of Qatar, for one more period only. The first Board of Directors shall remain for a period of five years,” to read as follows; “The members of the board of directors shall be elected for a period of three years and can be re-elected for more periods.” “The proposed amendments ensure the continued success of Al Meera,” said Al Meera’s Deputy Chief Executive Officer, Dr Mohammed Nasser al Qahtani. “With our shareholders always in mind, we hope that the proposed changes also work for their benefit.” The board recommendations are subject to the approval of the relevant authorities, the press release said. Al Meera earned a net profit of over QR77.3 million during the 2011 financial year which was an 18 percent increase than the previous year. The company’s revenue also reached QR1.166 billion, which was 27.5 percent higher than 2010. Fresh products sales increased more than 22.8 percent in comparison with the previous year. As an example, fruits and vegetables sales increased by 19.1 percent, dairy cheese sales by 20.6 percent, butchery sales by 28.7 percent, whilst bakery sales increased by 155 percent as a result of inaugurating more bakery counters in five branches. Gross profit amounted to QR176.9 million compared to QR 122.5 million in 2010, resulting in an increase of 44.4 percent. From/ Qatartribune