By Shaimaa Elise
The General Assembly meeting of Nile City Investment (NCIN) approved on Saturday increasing issued capital by EGP 100m.
The Assembly agreed to reimburse a full increase of cash and deposit in the licensee bank to receive subscriptions, and agreed to select Al-Ahli United Bank (AUB) to issue a certificate of deposit. The assembly also approved the amendment of Articles 6 and 7 of the Company Statute on the increase of its capital to include the outcome of the subscription.
NCIN head of investor relations Hamid Hashim told Daily News Egypt that the capital increase’s objective is to finance all current financial obligations. It is represented in repayment premiums and the interest-free loan from AUB obtained by NCIN in 2012, worth $70m.
Hamid added that a part of this capital will be specified for required maintenance and amendments to Fairmont Hotels, whose Egyptian branches are owned by NCIN.
The Assembly approved the amendment of Articles 4, 21, 29, 44, 46 and 48 of the NCIN Statute to facilitate the company’s business figures. The assembly also approved giving the necessary authorisations to terminate extraordinary procedures.
The Financial Supervisory Authority (FSA) refused to adopt a capital increase in August because NCIN did not commit to Article 70 of Law 159/1981. This entails calling the Assembly to be held for the second time within 30 days following the first meeting and this in the case of quorum absence.
NCIN had decreased losses for the first half of 2014 to a net loss of EGP 10.6m compared to a net loss of EGP 84.33m during the same period of 2013, a decrease of 87.4%.
The company’s current capital is totalled EGP 625m distributed over 6.25m shares of EGP 100 per share.
The company is investing in various fields in accordance with the provisions of Article I of the Investment Law 230/1989, except accepting deposits or banking.