UPDATE 2-Kuwait's Agility plans capital hike, cuts dividend

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By Rania El Gamal and Ulf Laessing

KUWAIT, March 22 (Reuters) - Kuwait's Agility (AGLT.KW: Quote, Profile, Research), the Gulf's largest logistics provider which is expanding abroad to lower exposure to U.S. military deals in Iraq, said on Saturday it was planning a 25 percent capital increase.

Shares would be sold at 450 fils each, well below Wednesday's closing price of 1.22 dinars, Agility said in a statement, without saying how much it wanted to raise.

Based on Agility's outstanding shares of 951.67 million, according to Reuters data, plus a planned 10 percent bonus share issue, a 25 percent capital hike sold at 450 fils each would be worth around 118 million dinars ($441.9 million).

Chairman Tarek Sultan al-Essa said in the statement the company was expanding abroad and wanted to strengthen its presence in emerging markets after having gained a strong position in the Middle East.

Agility has been diversifying away from U.S. government deals to supply troops in Iraq and Afghanistan by making acquisitions and expanding its non-governmental logistics business abroad. Agility said 2007 revenues rose by 26 percent to $6.25 billion, while operational profit in 2007 increased to $652.47 million, without providing a year-on-year comparison.

Agility's board also proposed an 80 fils per share cash dividend and a 10 percent bonus share issue for 2007, the statement said after a board meeting on Thursday.