Kuwait: KIPCO sells its GIG stake for $832mln

Kuwait: KIPCO sells its GIG stake for $832mln

Kuwait Projects Company (KIPCO) announced on Thursday the completion of the sale deal of its entire stake of 46,3 percent of Gulf Insurance Group (GIG) to Fairfax Financial Holdings for 256 million KD (around USD 832 million). The company said in a press conference that its net profit from the deal amounted to KD 73 million (about USD 237 million) and that the purchase price was set at KD two per share, provided that 54 fils are deducted from this amount, which is the value of the cash distributions that GIG worked to distribute in 2022. Sheikha Dana Nasser Al-Sabah, KIPCO's CEO said that the company's success in completing the transformational merger deal has led to the growth of its investment portfolio. Since then, the company been considering opportunities to exit or invest in order to achieve the ultimate goal of growth and create greater value for company's shareholders, she added. She added that the sale of KIPCO's stake to GIG is an evidence of the company's successful strategy of acquiring and expanding companies then exiting them in a timely manner based on the remunerative financial return. KIPCO was established in 1975 and listed on the Kuwait Stock Exchange in