14 July 2008
Bahrain - United Gulf Bank (UGB) today announced the transfer of its ownership in Jordan Kuwait Bank (JKB) to Burgan Bank after receiving the relevant regulatory approvals.
UGB and Burgan Bank are part of the KIPCO Group and the transfer of JKB shares to Burgan is part of KIPCO's restructuring of its financial services companies announced in March, 2008. The JKB shares, representing a 43.86% equity stake, were transferred at a price of JD 7.27 (US$10.25) per share and the transaction was executed on the Amman Stock Exchange. UGB will make a profit before expenses of approximately US$ 280 million on the transfer.
UGB will invest the proceeds of the transfer by acquiring up to 20% of Burgan Bank's shares at a price around the market value of 1 Kuwaiti dinar (US$ 3.75) per share. UGB currently owns approximately 0.7% of Burgan Bank shares.
Commenting on the move to transfer JKB shares and to invest in Burgan Bank, UGB's Managing Director, Mr Masaud Hayat, said:
"By transferring our investment in JKB to Burgan Bank, UGB has realized the hidden value of the asset and, by reinvesting the proceeds into Burgan Bank, UGB is acquiring a premier investment grade listed asset which will provide growth and value to our shareholders. As one of the region's leading investment banks, it is astute business for UGB to re-invest in a business that we have helped to build."
- Ends -
About UGB:
UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment/asset management companies and commercial banks. Its proprietary investments include assets in real estate, private equity, structured products and quoted securities. As of 2007 assets under management exceed US$ 9.6 billion (2006: US$ 8.5 billion). UGB's core subsidiaries and associates include: Algeria Gulf Bank, Al Dhiyafa Investment Company, Bank of Baghdad, Jordan Kuwait Bank, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Millennium Finance Corporation, Royal Capital Company, Syria Gulf Bank, Tunis International Bank, United Cable Company, United Gulf Bank Securities Company, United Gulf Financial Services Company, United Industries Company, United Medical Services Company and United Real Estate Company.
UGB and its subsidiary KAMCO have a proven track record of successfully completing around 60 investment banking transactions for its clients since 2001 with an aggregate value of over US$ 8 billion including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and merger and acquisition.
The KIPCO Group is one of the biggest diversified holding companies in the Middle East and North Africa, with assets worth more than US$ 21 billion under management or control. The Group has substantial ownership interests in a portfolio of over 50 companies operating across 21 countries. The company's main business sectors are financial services and media. Through the subsidiaries and affiliates of its core companies, KIPCO also has interests in real estate, industry, healthcare and the management & advisory sector.
For further information please contact:
United Gulf Bank
Tel: +973 17533233
Email info@ugbbah.com
Bahrain - United Gulf Bank (UGB) today announced the transfer of its ownership in Jordan Kuwait Bank (JKB) to Burgan Bank after receiving the relevant regulatory approvals.
UGB and Burgan Bank are part of the KIPCO Group and the transfer of JKB shares to Burgan is part of KIPCO's restructuring of its financial services companies announced in March, 2008. The JKB shares, representing a 43.86% equity stake, were transferred at a price of JD 7.27 (US$10.25) per share and the transaction was executed on the Amman Stock Exchange. UGB will make a profit before expenses of approximately US$ 280 million on the transfer.
UGB will invest the proceeds of the transfer by acquiring up to 20% of Burgan Bank's shares at a price around the market value of 1 Kuwaiti dinar (US$ 3.75) per share. UGB currently owns approximately 0.7% of Burgan Bank shares.
Commenting on the move to transfer JKB shares and to invest in Burgan Bank, UGB's Managing Director, Mr Masaud Hayat, said:
"By transferring our investment in JKB to Burgan Bank, UGB has realized the hidden value of the asset and, by reinvesting the proceeds into Burgan Bank, UGB is acquiring a premier investment grade listed asset which will provide growth and value to our shareholders. As one of the region's leading investment banks, it is astute business for UGB to re-invest in a business that we have helped to build."
- Ends -
About UGB:
UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment/asset management companies and commercial banks. Its proprietary investments include assets in real estate, private equity, structured products and quoted securities. As of 2007 assets under management exceed US$ 9.6 billion (2006: US$ 8.5 billion). UGB's core subsidiaries and associates include: Algeria Gulf Bank, Al Dhiyafa Investment Company, Bank of Baghdad, Jordan Kuwait Bank, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Millennium Finance Corporation, Royal Capital Company, Syria Gulf Bank, Tunis International Bank, United Cable Company, United Gulf Bank Securities Company, United Gulf Financial Services Company, United Industries Company, United Medical Services Company and United Real Estate Company.
UGB and its subsidiary KAMCO have a proven track record of successfully completing around 60 investment banking transactions for its clients since 2001 with an aggregate value of over US$ 8 billion including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and merger and acquisition.
The KIPCO Group is one of the biggest diversified holding companies in the Middle East and North Africa, with assets worth more than US$ 21 billion under management or control. The Group has substantial ownership interests in a portfolio of over 50 companies operating across 21 countries. The company's main business sectors are financial services and media. Through the subsidiaries and affiliates of its core companies, KIPCO also has interests in real estate, industry, healthcare and the management & advisory sector.
For further information please contact:
United Gulf Bank
Tel: +973 17533233
Email info@ugbbah.com
© Press Release 2008
