NIC begins collection process of Americana shares
Mandatory acquisition offer to close on February 13
National Investments Company (NIC) began yesterday receiving applications from shareholders wishing to tender for sale their shares in Kuwait Food Co (Americana). NIC saw a busy day with walk-ins from shareholders wishing to participate in the offer which closes on February 13, and a great number of telephone enquiries received from private and institutional investors from inside and outside of Kuwait expressing their interest in the deal.
To that end, National Investments Company held a press conference with the address of NIC’s board of directors and management members, Hamad Ahmad Al-Ameeri, Chairman, Fahad Abdulrahman Al-Mukhaizim, Chief Executive Officer, Noora Sulaiman Al-Fassam, Executive Vice President, Corporate Finance Sector, and Ruba Omar Al-Khairi, Senior Vice President, Wealth Management Sector, who answered enquiries addressed to them by the members of the press.
In the course of the conference, NIC’s executives highlighted the importance of this offer for the Kuwaiti stock market, and market liquidity in general after the process is complete. NIC has employed its resources, know-how and expertise seamlessly to be amply prepared to receive all shareholders with requisite information about the offer, including information accessible on their recently revamped website, and all requirements shareholders must meet in order to participate in the offer. The detailed information can be found on www.nic.com.kw, in addition to Americana’s website and that of Boursa Kuwait.
On June 18, 2016, Adeptio and Al-Khair National for Stocks and Real Estate WLL entered into an implementation agreement for the sale (by public auction) of 268,496,544 shares held by Al-Khair in the share capital of Americana (approximately 66.79 percent) to Adeptio. The purchase price for this block trade, which was conducted on October 20, 2016, was KD 2.650 per share. That deal was a tremendous success and marked a new era for mega acquisitions in Kuwait.
Under Kuwaiti securities rules and Capital Markets Authority Executive Bylaws, Adeptio was then obliged to submit a mandatory acquisition offer to buy all 122,657,505 remaining shares from minority shareholders. The offer price for the mandatory acquisition offer also stands at KD 2.650.
Earlier this week, the board of Americana said the offer by Adeptio to buy out minority shareholders at the offer price was fair. Additionally, independent investment advisor, Consultia, concluded that the offer price was fair and Americana’s board has endorsed the offer. Assuming all offer shares are acquired the total amount to be paid to minority shareholders will be KD 325,042,388.250.
NIC’s role as the Acquisition Manager of the transaction demonstrates the firm’s strong capabilities and expertise in managing and supporting acquisitions of this size and nature from start to finish. NIC’s expertise may have to be put to use again in the near future as this deal signals yet another hint of optimism for Kuwaiti equities on the whole.