Taib Bank's shareholders have approved an increase in the authorised share capital of the bank from $200 million to $1 billion.

They also approved an increase in the paid-up capital from $107 million to $250 million. The increase in paid-up capital will be through a rights issue of approximately 138 million shares, with a face value of $1 each at a premium of $1.05, and will be subject to regulatory approvals being obtained.

Unsubscribed amounts in the rights issue, if any, will be issued through a private placement.

Shareholders of the bank at the annual general assembly approved the distribution of a share dividend of five per cent of the paid-up capital of the bank.

The annual general assembly of shareholders also approved the appointment of five new directors, with effect from November 8, nominated by Dubai Financial Group, which acquired 60 per cent of the shares of the bank.

As a result, the bank now has nine directors on its board, five of whom have been nominated by Dubai Financial Group.

'The increase in the capital of Taib Bank, is to strengthen the capital base of the bank in keeping with the substantial enlargement of the Bank's activities envisaged for the coming year,' said vice-chairman Iqbal Mamdani.-TradeArabia News Service