‘This transformative transaction will make combined entity one of the largest public investment holdings in the MENA region’ says company’s Group CEO
At the Extraordinary General Assembly Meeting, the shareholders of KIPCO – Kuwait Projects Company (Holding) – approved the company’s merger by amalgamation with Qurain Petrochemical Industries Company (QPIC). The EGM was held with a quorum of 85.77 per cent.
The shareholders also approved the increase of KIPCO’s current authorized capital of KD 300,000,000 and its issued and paid-up capital of KD 264,000,000 such that the authorized, issued and paid-up capital of the company becomes KD 504,847,626.900. This in-kind increase of 91.2% in issued and paid-up capital is to allow for the allocation of 2,408,476,269 shares to QPIC shareholders, at a swap ratio of 2.24 new KIPCO shares for every QPIC share. The capital increase is subject to the approval of the merger by QPIC’s shareholders.
KIPCO obtained the approval of the Capital Markets Authority (CMA) for the merger in June, and the approval of the Competition Protection Agency (CPA) in August. QPIC will be holding an EGM to obtain the approval of its shareholders, following which several procedures must take place. The merger transaction is expected to be completed before the end of 2022.
Sheikha Dana Nasser Sabah Al Ahmad Al Sabah, KIPCO’s Group Chief Executive Officer, said:
“We are delighted to have obtained the approval of our shareholders to merge with QPIC. This is an important milestone in this transformative transaction that will make the combined entity one that ranks among the largest public investment holding companies in the MENA region. We now await the results of the EGM of QPIC so that we can proceed with the final procedures and close the transaction before the end of the year.”
“We believe that the private sector has a major role to play in creating a more sustainable Kuwaiti economy, in line with the vision ‘New Kuwait 2035’. I would like to thank the CMA, CPA, the Ministry of Commerce and Industry and Boursa Kuwait for their efforts to ensure that this transaction is one that takes into account the best interest of all stakeholders and one that contributes to enhancing Kuwait’s overall economic position. I also express my appreciation to our shareholders for their trust, and to our Board of Directors for their guidance and support.”