|24 July, 2019

Kuwait sovereign fund sells 16.1% stake in Gulf Bank

Kuwait Investment Authority (KIA) has sold a 16.1% stake in Gulf Bank to Alghanim Trading Co

Image used for illustrative purpose. Kuwaiti money changer Mohammed Hussein counts Kuwait dinars in his downtown Kuwait City shop.

Image used for illustrative purpose. Kuwaiti money changer Mohammed Hussein counts Kuwait dinars in his downtown Kuwait City shop.

REUTERS/Stephanie McGehee

DUBAI- Kuwait Investment Authority (KIA) has sold a 16.1% stake in Gulf Bank to Alghanim Trading Co for 152.93 million dinars ($503 million), making the business conglomerate the biggest shareholder of the country's fourth-biggest bank, according to a bourse filing.

The purchase will almost double the Kuwaiti group's stake to about 33% from a previous level of 16.67%.

Alghanim, which has interests in manufacturing, automotive and food businesses, is controlled by Omar Kutayba Ahmad Alghanim, the chairman of Gulf Bank.

According to Refinitiv Eikon data, KIA owned 20.21% of Gulf Bank before the stake sale, which took place through an auction on Wednesday.

KIA still owns stakes in other banks, including a 24% stake in Kuwait Finance House and a 19.2% stake in Bank of Bahrain and Kuwait.

($1 = 0.3040 Kuwaiti dinars)

(Reporting by Saeed Azhar, editing by Davide Barbuscia) ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))

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