KIPCO: All the company’s assets are salable at the right price

Al-Sabah indicated that the merger deal is currently in the evaluation period, after which investment houses will be consulted about this deal, and the required approvals will be taken from all parties to move forward with the merger process, while it is expected to be completed in the third quarter of this year.

Al-Sabah pointed out that “KIPCO” is an investment company, and therefore all the group’s assets are salable at the right price, in the interest of the shareholders.

The merger between the two companies will lead to the formation of an investment holding company that will be among the largest in the Middle East and North Africa region, with assets amounting to 10.86 billion dinars, according to the latest financial data disclosed by the two companies. The end of September of last year, while the assets of “Qurain” amounted to 779.93 million dinars as at the end of 2021.

The market value of the KIPCO Group amounts to about 551 million dinars, compared to 434 million dinars for the Qurain Company, which means that the market value of the two companies combined amounts to about 985 million, while the paid-in capital of the KIPCO Group is 264 million and the Qurain Company 109.9 million, with a total of 373.9 million dinars for the two companies.

The merged entity will benefit from a balanced and diversified portfolio of assets, to be the first company to achieve integration in its investment portfolio locally, as it will include petroleum chemicals and oil services, in addition to banking, foodstuffs, insurance, industry, real estate, media and others, which provides a more stable cash flow with diversified investments. sectorally and geographically.

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The merger in general has great benefits, especially after the Corona pandemic, among them creating a larger entity that is able to compete better and give added value, as a result of its high financial capabilities and the integration of expertise, in addition to reducing operating and management costs and developing services and products.

According to the memorandum of understanding, the KIPCO Group will be the merging company, with Al-Qurain Company being the merged company, where the merger transaction is subject to a detailed process according to Kuwaiti laws and regulations, including due diligence by both parties, evaluation of both entities, and a fair opinion by the independent investment advisor approved.

The deal will need to obtain the approvals of the regulatory authorities and stakeholders, as the Capital Markets Authority and the Competition Authority must approve the merger between the two companies, in addition to holding an extraordinary meeting of the general assembly of both KIPCO and Al-Qurain to obtain the approval of their shareholders for the move.