3 mergers on a hot fire creating giant entities … banking, investment and real estate

– Consultants from KFH and Al Ahli United complete the update of the prudential investigation
KIPCO and Al-Qurain sign a memorandum to evaluate the proposed merger offer
– A large real estate entity through “United Real Estate”, “Hospitality” and “United Towers”
– “stc” acquired the “Electronic Portal Holding” for 23 million dinars

Economic circles in Kuwait are talking about mergers that need to be implemented in the coming period, which will lead to the formation of many financially and economically large entities at the banking, investment and real estate level, and within the telecommunications sector.

The expected transactions coincide with the gradual recovery of economic activity in Kuwait after two years of suffering due to the “Corona” crisis, which led to an almost total closure of several economic sectors in the country, for a period that as considered the longest of all. countries in the world.

Highlights on the list of operations are the acquisition agreement between Kuwait Finance House (KFH) and Ahli United Bank-Bahrain, which is considered one of the most important prospective transactions, which will lead to the establishment of a large Islamic banking entity.

Dr.  Muhammad Al-Faris

In the recent period, many revelations have emerged between the two sides of the deal, the most recent of which is that the specialized advisers appointed by the board of directors of “KFH” and “Ahli United” have completed and submitted the due diligence study. their reports to the two banks’ boards for consideration and evaluation, after agreeing to update them. And the resumption of related procedures after they were discontinued in the last two years due to the “Corona” pandemic.

KFH also informed the Board of Directors of Al Ahli United Bank of an updated share exchange rate on condition that approval from both shareholders and regulatory authorities is completed, while the two banks discuss the proposed share exchange rate and possible alternatives.

“KIPCO” and “Korain”

On the other hand, the merger agreement between the Kuwait Projects Company Holding Company “KIPCO” and the Qurain Petrochemical Industries Company “Al-Qurain” is boiling on a silent fire, as the two companies have signed a memorandum of understanding under which it has agreed to evaluate the merger offer, which will lead to the establishment of an investment holding company that will be one of the largest in the Middle East and North Africa region, with assets of 10.86 billion dinars, according to the latest financial data known was made by the two companies.

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

The merger in general will have major benefits, especially after the “Corona” pandemic, including the creation of a larger entity that is able to compete better and add value, due to its high financial capabilities and integration. of expertise, in addition to reducing operating and management costs and developing services and products.

triple merger

At the same time, Kuwait is awaiting the expected tripartite merger between the United Real Estate Company, the Hospitality Holding Company and the United Towers Holding Company, which will also lead to the establishment of a property entity of the largest in the region, which will attract investors in the positively impact three companies, and the asset generation portfolio improves Revenue, and adds value, in addition to increasing ownership and issuing new shares, as well as improving operating performance, increasing competitive financial capacity and creating new investment opportunities for shareholders of the merged companies.

23 million dinars

Finally, the domestic market has seen the completion of a procurement transaction in the telecommunications sector, represented in the acquisition by Kuwait Telecom Company «stc» of the Electronic Gate Holding Company, for 23 million dinars, which will lead to the expansion of the activities of « stc »and the shift from traditional services to digital services and solutions Advanced informatics in the field of integrated communication, and advanced technical solutions, by providing digital capabilities of“ ICT ”,“ IoT ”and“ Cloud Services ”, in addition to improving the company’s internal capabilities in the field of information and communication technology in line with rapid global developments.

The process will enable stc to take advantage of growth opportunities in the corporate market, develop the scope of work and exchange experiences to support the digital transformation process, in order to provide the best services, products and solutions, the latest provide services and the company’s activities and businesses in the field of integrated communications and advanced technology solutions.

Offers from the past two years

The aforementioned transactions occur about two years after the completion of the last merger process between two companies listed on the Kuwaiti Stock Exchange, specifically “House of Papers” and “Al-Aman”, which completed the merger proceedings between them in March 2020. that, specifically in December 2019, the merger of “KAMCO” affiliated to the Kuwait Stock Exchange “KIPCO” with “Global Investment House” (Global) to change the name of the new entity to “Kamco Invest”.

It is also accompanied by the acquisition by Gulf Insurance Group of AXA’s global stake in AXA Golf (Bahrain, UAE, Oman and Qatar), AXA Cooperative Insurance Company (Saudi Arabia) and AXA Green Crescent Insurance Company (UAE), for $ 474 , 75 million, which is considered one of the largest acquisitions in the insurance sector in the region.

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