By: Eman Ghaly and Islam Fadl
Kuwait - Mubasher: Mergers and acquisitions (M&A) are sometimes seen as a reflection of the market’s dynamism, and 2016 saw a number of major M&A deals in Kuwait, led by the KWD 711.5 million Americana deal.
In mid-2016, UAE - based Odptio Company announced signing an agreement with Al Khair National for Stocks and Real Estate Company to acquire Kuwait Food Company (Americana), and in October Odptio purchased the company’s 268 million shares for an estimated value of KWD 711.5 million.
According to financial analyst, Abd Allah Al Zamel, the increase in mergers and acquisitions in 2016 was one of the main supporters to the Kuwaiti market and specially the Americana deal which helped the market’s performance in the last quarter of the year.
In February, Saudi Telecom Company (STC) acquired Kuwait Telecommunication Company’s (VIVA) 128.86 million shares for KWD 128.86 million.
In the same month, Ahli United Bank acquired a 30% stake in Middle East Financial Investment Company (MEFIC).
In August, Mezzan Holding completed its takeover of a 70% stake in the KSA-based Al Safi Food Company, through a capital injection of SAR 90.75 million (KWD 7.3 million).
In September, Global Investment House announced that its alternative asset management arm, Global Capital Management (GCM), concluded a successful exit from the controlling 93.27% stake in Jordan Trade Facilities Company, generating a net amount of $29 million.
Last November, Al Sayer Group Holding increased its stake in Warba Bank to 6.08%, to own 60.8 million shares of Warba’s overall 1 billion, with a market value standing at KWD 13.5 million.
On 25 December, Al Imtiaz Investment Group completed the sale of its stake in Khaleeji Commercial Bank.
Al Imtiaz sold 147.11 million shares in the bank at a value standing at BHD 9.56 million or KWD 7.76 million ($25.3 million) to SHUAA Capital.
Refrigeration Industries and Storage Company also announced in December that it has acquired 100% of Gulf Paramount For Electrical Services Company for KWD 2.85 million.
Translated By: Moslem Ali
