National Ranges Company KSCC "Mayadeen" to increase its capital to KD100 million

Mr. Fawaz Al Qattan, the Chairman of Mayadeen said that the assembly approved the capital increase to pursue key opportunities in the GCC markets as part of the company's expansion and diversification strategy.

"Mayadeen has set its strategy to incorporate a mix of business ventures that will provide its investors with revenue-based, geographical and operational diversification," he added.

Mr. Fawaz AlQatan stated that the increase will take place through the issuance of 975,692,080 ordinary shares. The capital increase is made through a combination of rights offering to Mayadeen shareholders registered as at the end of trading session on Saturday November 11, 2006 and secondary offering to other new investors.

He pointed that Mayadeen has mandated Global Investment House "Global" to lead manage its capital increase.

Further explaining the structure of the capital increase, Al Qattan explained that upon completion of this Private Placement, the shareholders of Mayadeen will receive 42,538,860 shares by way of distribution shares (1.75 free shares for every 1 share held) and acquire an additional 66,846,780 rights shares (2.75 rights shares for every 1 share held ) at 100fils per share. The distribution shares and rights shares will be offered to shareholders as at the end of November 11, 2006 trading session on a pro rata basis.

He followed by saying that from the total 975,692,080 new shares issued, 866,306,440 shares will be offered to new investors at a price of 109.91fils per share, which includes marketing and allotment fees of 5fils per share, plus 4.91fils per share to cover the cost of the free distribution shares.

The balance of 109,385,640 shares will be offered as:

Pro rata Distribution Shares: 1.75 free shares for every 1 share held by shareholders as of November 11, 2006. These shareholders will receive a total of 42,538,860 shares and these shares will be issued free of cost to the existing shareholders.
Pro rata Rights Issue: 2.75 rights shares for every 1 share held by shareholders as on November 11, 2006. These shareholders will also have the right to subscribe to a maximum of 66,846,780 shares at 100fils per share.

Mayadeen Chairman explained that the shareholders registered on November 11, 2006 will be allowed to subscribe to the additional 866,306,440 shares at the same terms as set for the new investors and such subscription will be subject to allocation.

Upon completion of the private placement, as per the offer structure, the shareholders as at the end of trading session on November 11, 2006 will account for 13.4% ownership, while other new shareholders will account for 86.6%.

As for the utilization of the proceeds from the capital increase, Mr. Fawaz Al Qattan said that the company has identified certain projects and will announce them shortly after a memorandum of understanding is signed between Mayadeen and the sellers.

He concluded by saying that Mayadeen intends to list on Dubai Financial Market after the completion of the capital increase.