Kuwait - First Takaful Insurance (FTI) has completed all procedures to sell its 35% stake in Turkey’s Neova Sigorta Insurance Company, a sister company, for around KWD 12.14 million as per the exchange rate on the sale date.
The Kuwaiti insurer logged a loss worth KWD 4.7 million approximately at the exchange rate on the sale date, representing changes in exchange rate previously registered in the company’s budget in the shareholders’ rights at KWD 4.9 million, according to a stock exchange filing on Sunday.
Cash liquidity rate has been increased by the same selling value, KWD 12.14 million, whereas the investment in the affiliate company was down by KWD 11.9 million.
Moreover, the company noted that 5% of the transaction’s value is suspended upon completion of other procedures in Turkey as well as other expenses.
The deal’s financial impact will reflect on the financial statements for the second quarter (Q2) of 2020.
On 11 February, First Takaful expected the proceeds from the said sale to range from KWD 11.5 million to KWD 13.1 million.
On 6 February, the insurance firm announced the signing of a preliminary agreement to sell its 35% stake in Neova Sigorta.
It is worth mentioning that during the first nine months of 2019, First Takaful’s profit grew to KWD 826,240, compared with KWD 809,040 in the same period of the year before.
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