March 19 Bahrain-based Gulf Finance House
will seek shareholder approval later this month for a
potential reduction in share capital and to issue a convertible
sukuk of up to $500 million to restructure debt and fund new
The Islamic investment firm, whose unit is in the process of
selling a majority stake in English soccer club Leeds United,
was repeatedly forced into restructuring debt as the firm
struggled in the aftermath of the global financial crisis.
Under the proposal, GFH will reduce the nominal value of its
shares by 13.8 percent to $0.265 per share from $0.3075,
according to a notice on GFH's website. As a result, paid-up
capital will be cut to $837 million from $972 million.
GFH also aims to issue convertible sukuk worth up to $500
million to restructure current liabilities, develop projects and
fund possible future acquisitions, subject to shareholder and
regulatory approval. No timeframe was indicated for the
potential offering in the statement.
The proposals will be discussed during its annual general
meeting on March 31.
The investment firm made a net profit of $5.2 million in the
three months to Dec. 31, up from $2.5 million in the prior-year
period. For the 2013 full year, GFH's net profit fell 37.2
percent to $6.3 million.
GFH, through its Dubai-based subsidiary GFH Capital, agreed
to sell 75 percent of Leeds United to Italian Massimo Cellino
last month, subject to the takeover being sanctioned by the
Football League governing body.
(Reporting by Bernardo Vizcaino; Editing by David French)