Muscat Electricity Distribution raises capital to OMR72m

Business Saturday 13/February/2016 18:42 PM
By: Times News Service
Muscat Electricity Distribution raises capital to OMR72m

Muscat: Muscat Electricity Distribution Company (MEDC), a member of Nama Group (Electricity Holding Company), has raised its capital base to OMR72 million by issuing OMR71.5 million in rights shares. The shares were issued to existing shareholders by converting their retained earnings/shareholder loans to equity.
“MEDC restructured its balance sheet during 2015 to enable its long-term borrowing, as per the strategic financial plan,” Electricity Holding Company (EHC) said in response to Times of Oman queries.
Meanwhile, a study into the readiness of MEDC to be privatised is continuing. However, there is no link between the company’s capital enhancement programme and the study on privatisation.
The decision to identify more companies for privatisation lies with the government and not with EHC, the company added.
According to an earlier press statement, the purpose of the study is to explore privatisation options and assess the readiness of MEDC to be privatised.
The objectives of MEDC privatisation are to promote private sector participation in the national building process and to enhance the value for staff, customers and shareholders.