Meysan Lawyers and Legal Advisors acted as sole legal advisor to Agility Investment Holding Limited in connection with the full conversion of KWD 31 million outstanding convertible loans into common shares of National Real Estate Company KSC.
In accordance with the terms of the loans, Agility elected to convert the outstanding principal and interest into an aggregate of 272,800,000 common shares of NREC at 100 fils nominal value and share premium. Following the conversion, NREC’s debt is reduced by KD 31 million, while its issued and paid up share capital increases from KWD 108,862,510 to KWD 136,142,510, in addition to share premium of KWD 5,266,764.
Meysan Partner, Tarek Yehya, stated, “The decision by Agility to convert 100% of its loans is a strong signal of confidence in the future prospects of NREC. The full conversion will also help smooth out fluctuations in the NREC’s working capital and support its existing growth objectives. More importantly, this transaction also represents a landmark since it is the first completed based on the new regulations issued by the Ministry of Commerce and Industry regarding non-cash capital increases. We are hopeful that this will represent a first step towards the further development of Kuwait’s capital markets as the most robust in the region.”