(MENAFN- Daily News Egypt) Beltone Holding has revealed the reasons behind its decision to increase its authorized capital from EGP 11bn to EGP 22bn, and its issued and paid-up capital from approximately EGP 10.926bn to about EGP 21.676bn. The company disclosed these plans in a statement to the Egyptian Exchange on Monday.

The primary motivation for increasing the authorized capital is to accommodate the rise in issued capital, with the increase in issued and paid-up capital driven by nine strategic objectives. These objectives include the establishment of new companies and obtaining necessary licenses to engage in new activities or expand existing ones. In particular, Beltone aims to establish subsidiaries to broaden its non-banking financial services.

The capital raise also aims to enhance Beltone's ability to acquire or invest in companies within industrial, service, or commercial sectors, whether listed on the Egyptian Exchange or not. It will help increase the capital of existing subsidiaries, improve liquidity within the holding company, and finance the activities of these subsidiaries. Additionally, the company intends to invest in advanced information technology systems to improve regulatory performance, risk monitoring, and financial support management.

Expanding the range of products and services offered by Beltone and its subsidiaries is another key objective. The company plans to enter new sectors and enhance the performance of its financial services by attracting specialized talent and injecting investments into its subsidiaries. Another goal is to meet the growing cash liquidity needs required to support Beltone's ongoing expansion and diversify its investments in line with market developments.

Beltone's planned capital increase has already received approval from the Financial Regulatory Authority (FRA), which authorized the company to proceed with preparations for an extraordinary general assembly meeting to discuss the proposal.

MENAFN31122024000153011029ID1109043821