Muscat-Mubasher: Salalah Mills’ board decided on 27 August to increase the capital by 10% through the issuance of right preference to shareholders at OMR 0.75 per share in the first quarter of 2016, according to a bourse filing.
Based on a feasibility study conducted by the Expert House, the board gave the go-ahead to add a new flour mill with a production capacity of 600 metric tons per day.
The project’s cost will be around OMR 7.5 million, the statement said, adding that the new mill is expected to commence production in Q1-17.
The Omani company said that 50% of the new project will be financed by issuing new shares and the other half through facilities.
The new project comes within the company’s strategy to promote its position as the biggest flour mill in Oman and one of the largest flour mills in the GCC countries.
