GGICO proposes bonus and Dh500m convertible bonds

Gulf General Investment Company (GGICO), listed on the Dubai Financial Market (DFM), has proposed 35 per cent bonus and the issue of mandatory convertible bonds of Dh500 million.

It also reported six per cent increase in net profit for the year ended December 31, 2008, at Dh590m against Dh555m for the corresponding period last year, according to unaudited financial statement for the year.

The board of directors of the company, at its meeting yesterday, also decided to convene the annual general meeting of its shareholders on March 30 to approve the proposals.

"The year 2008 was unusually challenging with the spread of the global crisis into the Middle East by the end of the third quarter. Our diversification into core industrial and manufacturing sectors in over 30 subsidiaries helped us withstand the crisis and come out with a remarkable result," said Managing Director Mohamed Abdalla Juma Al Sari.

"We added 12 companies during the year, six of them through acquisition and another six through greenfield development.

"However, 2009 will be the year of consolidation in our core industrial and manufacturing activities and we do not have plans for acquisition during 2008," he said.

The stock rose a marginal five fils to Dh5.50 on the Dubai Financial Market yesterday. The counter attracted eight deals of 62,620 shares. The scrip has been hovering around Dh5 in the recent past from a 52-week high of Dh15.50.

GGICO, established in 1973, is conglomerate with widely diversified activities in manufacturing, industrial, financing and brokerage, insurance, retail, services, trading and transport.

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