Update: Kuwait resumes trading of Agility shares

23 June 2016

Acquisition talks between Agility and Kharafi National ongoing

The Kuwait Stock Exchange (KSE) has resumed the trading of shares of logistics firm Agility, following its compliance to submit an explanation of reports pertaining its potential acquisition of a local contracting firm.

The KSE suspended the trading of the logistics firm’s shares on 22 June due to local media reports indicating Agility has made a verbal offer to acquire Kharafi National, the contracting arm of the local conglomerate Al-Kharafi Group.

In its letter to KSE, Agility stated that the company “reviews all kinds of investment opportunities in general.” It also said the negotiations are at the preliminary stage and that it will disclose it to the respective stock exchanges, as required by the applied disclosure rules, once “it enters into a transaction that is material.”

Agility’s shares are traded both on the KSE and the Dubai Financial Market (DFM).

Al-Kharafi Group just recently offloaded its 67 per cent stake worth $2.37bn in Kuwait Food Company (Americana) to Adeptio, a consortium of Gulf investors led by Mohamed Alabbar, the chairman of the UAE’s largest developer Emaar Properties.

Earlier this year, Agility said it is pursuing all expansion and investment plans it had put in place for 2016 despite the regional economic slowdown and instability threats.

“We have not scaled down or held back on our plans,” Bassel el-Dabbagh, Agility CEO for Abu Dhabi told MEED in January.

Most of the planned investments are focused in the Sub-Saharan Africa, and potentially in Iran, where the company sees strong demand growth for logistics services.

Kharafi National is the partner agency of Turkey’s Limak, which won the $4.3bn contract to build Terminal 2 at the Kuwait International Airport.

 

 

 

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