GFH seeking shareholders’ nod for share capital cut, sukuk
Bahrain-based Gulf Finance House has said it will seek shareholder approval later this month for a potential reduction in share capital and to issue a convertible sukuk of up to $500m to restructure debt and fund new projects, Reuters has reported. Under the proposal, Islamic investment firm will reduce the nominal value of its shares by 13.8% to $0.265 per share from $0.3075. As a result, paid-up capital will be cut to $837m from $972m. GFH, 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.