Rana Mamdouh _ The Board of Directors of Contact Financial Holding approved submitting a proposal to the Ordinary General Assembly regarding obtaining an interest-free subordinated loan from major shareholders up to a maximum amount of EGP 700 million.
Contact stated, in its disclosure sent to the Egyptian Exchange (EGX) today, that the CEO and Managing Director presented the company's expansion plan and its required financial resources, as well as the funding necessary to regularize the status of certain subsidiaries in accordance with the requirements of the Financial Regulatory Authority (FRA) and its issued decisions, and to inject the necessary funds to increase the capital of subsidiaries.
It indicated that the total estimated amounts required to increase the company's capital to execute the expansion plan range between EGP 1.6 billion and EGP 18 billion, at nominal value for all shareholders.
It noted that the loan will be utilized to increase the company's capital in the future at nominal value for all shareholders.
Contact highlighted that the decision of the Board of Directors held yesterday comes out of keenness to continue the company's expansion plan, and given its need for financial resources and injecting the necessary funding to increase the capital of subsidiaries.
It clarified that this was done in accordance with the feasibility study regarding the reasons and justifications for the increase, which will be presented in the future to all shareholders of the company, with subscription at nominal value pursuant to the regulating legal decisions, rules, and procedures.
