Mubasher: KAMCO Investment Company and Global Investment House have signed a memorandum of understanding (MoU) to boost talks over the merger deal and commence the regulatory process, according to a recent press release.
Based on the MoU, KAMCO will be the merging entity and Global will be the merged company.
This step comes as another milestone towards forming a leading pan-MENA non-banking financial services company, the statement noted.
KAMCO, listed on Boursa Kuwait, and Global will combine their accumulated knowledge and expertise during the past 20 years to become a regional non-banking financial services powerhouse.
The merger is considered the largest of its kind in the country’s investment segment and will offer an array of best-in-class financial products and services.
“It will also position the combined entity as the largest asset management and investment banking firm in Kuwait, in terms of assets under administration and management totaling $13 billion across funds and segregated accounts, with investment banking credentials totaling $21 billion across equity and debt capital markets, mergers and acquisitions and real estate,” according to the press release.
“The combined entity will strengthen the regional presence in core MENA markets, specifically in Kuwait, Saudi Arabia, United Arab Emirates, Egypt, Bahrain, Jordan, and Turkey,” vice chairman of KAMCO Entisar Al Suwaidi said.
It is noteworthy that the board members of both KAMCO and Global endorsed the fairness opinion submitted by the independent investment advisor, declaring the readiness to merge.
This included the fair value of each company, recommended swap ratio of 0.75522821 KAMCO shares for each Global share, and recommendation to call for a general assembly of both companies to vote on the merger, subject to the approval of the relevant regulatory authorities.
