Shareholders and purchasers of the tradable subscriptions rights at Ghabbour Auto (GB), who account for 99.86% of the company’s shares, exercised their right to participate in the EGP 960m capital increase, the company said in an official statement.
The subscription right allows shareholders to maintain the same percentage of ownership they had before the new stock issuance within a certain expiry date for subscription. GB said that the subscription period began on 1 April and continued for 30 days, ending on 30 April.
The company’s capital will increase to EGP 1.094bn and will be allocated to seek growth and margin enhancement opportunities.
GB highlighted that is to invest in a tire manufacturing facility and a motorcycle and three wheelers assembly project.
The company stated that the “tradable rights issue saw existing shareholders given the opportunity to subscribe to 960m new ordinary shares on a pro-rata basis at par (EGP 1 per share, plus issuance fees of EGP 0.01 per share)”.
The company added that “payment was done either in cash and/or through the capitalisation of debts owed by GB Auto to shareholders with the ability to trade their subscription rights”.
In February, Marketing Manager Mohamed Ismail told Daily News Egypt that Mobica Office Furniture is negotiating with Ghabbour Auto to supply car interior pieces.