Gulfinvest makes high-profile purchase

18 September 1998
FINANCE

Gulfinvest International has made its first high-profile domestic transaction since it was incorporated in Kuwait in July last year by purchasing a 25 per cent stake in Kuwait Investment Company (KIC) at auction on 3 September. The vendor was Kuwait Investment Authority (KIA), the Kuwaiti state's investment arm. Established in 1961, KIC is Kuwait's oldest investment company and is listed on the Kuwait Stock Exchange.

Gulfinvest paid 315 fils ($1.03) a share for the 125 million on offer, making the deal worth KD 39.4 million ($129 million). Kuwait Investment Projects Company and Bayan Investment Company also participated in the bidding, which opened at 240 fils ($0.67) a share. Under the rules of the Kuwaiti privatisation programme, KIA will have to sell another tranche of KIC shares by public

subscription in the coming months.

Gulfinvest chief executive officer Faisal Kudsi says Gulfinvest was attracted to KIC because it is the largest and most well-established investment company in Kuwait with assets acquired over many years. Gulfinvest has a fully paid-up capital of KD 28 million ($92.5 million) and 110 institutional and private shareholders. In July it launched a new investment company in Jordan called Jordan Investment Trust (Jordinvest - MEED 31:7:98).

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