Kuwait Projects Company (KIPCO) investors announce a merger with Qurain Petrochemial Industries Company (QPIC).
What does this operation represent?
KIPCO is a company that invests mainly in the Middle East and North Africa. Its sectors of activity are financial services, media, real estate and industry. KIPCO’s financial services interests include stakes in banks, insurance companies and asset management companies.
Its main businesses include Burgan Bank, United Real Estate CO, Gulf Insurance Group, Kamco Invest and the pay TV and online streaming company OSNN.
QPIC is a major private investor in the petrochemical sector in Kuwait. It focuses mainly on the energy and industrial sectors, which it wishes to develop further. QPIC was founded to participate in the country’s oil and gas sectors. It also aims at creating local industries to enhance Kuwait’s economy.
QPIC’s shareholders must still approve the merger. However, it is expected that they will receive 2.24 new shares of KIPCO for each QPIC share already owned. In addition, KIPCO will continue to be listed on the Kuwait Stock Exchange. This will not be the case for QPIC, which will be dissolved and its assets, rights, financial liabilities and commitments will be transferred to KIPCO.
In addition, KIPCO has approved a capital increase amounting to 240.8 million dinars. This is equivalent to 91.2% of the company’s current issued and paid-up capital. The increase will be carried out through an issue of 2.408 billion shares without share premium.
A KIPCO strategy
The merger between the two companies will form a new large-scale entity. In this sense, it will be one of the largest listed investment holding companies in the Middle East and North Africa.
KIPCO has a total market capitalization of 403.8 million dinars. QPIC for its part, holds 343.3 million dinars according to data from Refinitiv.
Sheikha Dana said that KIPCO is conducting strategic reviews in its portfolio. In fact, it wants to exit certain businesses when the time and price are right.
