Kuwait’s KIPCO gains shareholder nod on deal for Qurain

KUWAIT, Sept 5 (Reuters) – Kuwait Initiatives Firm (KIPCO) (KPRO.KW) traders have authorised a merger with Qurain Petrochemical Industries Firm (QPIC) (ALQK.KW), KIPCO boss Sheikha Dana Nasser Alsabah mentioned on Monday.

QPIC shareholders, who additionally must approve the deal, will obtain 2.24 new shares in KIPCO for each QPIC share they personal.

KIPCO, the nation’s largest listed funding firm, will proceed to commerce on Kuwait’s inventory trade whereas petrochemicals trade investor QPIC will probably be dissolved and its belongings, rights, monetary liabilities and commitments will probably be transferred to KIPCO.

KIPCO shareholders additionally authorised a capital enhance of 240.8 million dinars ($781.03 million), equal to 91.2% of the corporate’s present issued and paid-up capital, by issuing 2.408 billion shares with no issuance premium.

The Qurain deal “will make the merged entity one of many largest listed funding holding corporations within the Center East and North Africa”, CEO Sheikha Dana advised the corporate’s shareholder assembly.

KIPCO has a market capitalisation of 403.9 million dinars, in contrast with Qurain’ 347.3 million dinars, Refinitiv information reveals. KIPCO is QPIC’s largest shareholder with a 29.53% stake, Refinitiv information reveals.

Sheikha Dana advised Reuters after the assembly that KIPCO is conducting a “strategic evaluate” of its portfolio with an adviser and will exit some companies on the applicable time and value.

Its core companies embody Burgan Financial institution (BURG.KW), United Actual Property Co (UREK.KW), Gulf Insurance coverage Group (GINS.KW), Kamco Make investments (KAMC.KW) and pay tv and on-line streaming firm OSN, in line with KIPCO’s web site.

($1 = 0.3083 Kuwaiti dinars)

Reporting by Ahmed Hagagy in Kuwait
Writing by Nayera Abdallah in Cairo and Yousef Saba in Dubai
Enhancing by Louise Heavens and David Goodman

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