The shareholders of the Kuwait Projects Company Holding “KIPCO” agreed to merge with the Qurain Petrochemical Company, and agreed to increase the company’s capital in kind by 251 million dinars through the issuance of 2.4 billion new shares, provided that the increase shares will be allocated to “Qurain” shareholders.
The next step will be to obtain the approval of the “Qurain” shareholders to Dealaccording to Iman Al-Awadi, Vice President of Investor Relations at Kuwait Projects Holding Company (KIPCO), in an interview with Al-Arabiya.
She said, “Once we obtain the approvals, we have a set of procedures left to complete the merger process, which is expected to be completed before the end of the year. These procedures are related to the stock markets and the clearing process following official approvals have been obtained.”
Last March, KEPCO and Qurain signed an agreement to assess a potential merger between the two companies, which would lead to the creation of a new entity with a combined market value of approximately $2.7 billion.
Al-Awadi indicated that the company’s portfolio following the merger will expand and diversify, and said: “At the present time, KIPCO’s largest activity is concentrated in the banking and finance sector, as well as insurance, a large part of the petrochemicals, logistics, health care and nutrition sectors will be added (with SADAFCO within the Qurain portfolio), in addition to Other sectors KIPCO has, such as real estate and media.
She also noted that the company has plans in place regarding entitlements and debts, and these plans go ahead regardless of the merger.
And she continued: “After the merger, an accounting process will take place on the basis of which the company’s financial position will become clear, and we will announce the numbers clearly.”
On the other hand, the Vice President of Investor Relations at KEPCO confirmed that the merger will create one of the largest investment companies listed in the region, and one of the top 10 in the Kuwait Stock Exchange, “This size will give us the ability to enter into new investments and to fully or partially exit. of some investments.
She also added that the company is currently working with one of the largest international advisors to create a strategic view of the company’s portfolio following the merger, and to develop a plan that will be announced at the time that explains how the shape of the entity will change following the transaction.