KIPCO re­aligns op­er­a­tions of its Bahrain-based UGB

‘Strate­gic cre­ation of two dis­tinct lines of busi­ness’: Al-Ay­yar

Kuwait Times - - BUSINESS -

KIPCO - the Kuwait Pro­jects Com­pany (Hold­ing) - has an­nounced the re­align­ment of the op­er­a­tional struc­ture of its Bahrain-based sub­sidiary, United Gulf Bank (UGB). The re­align­ment of the in­vest­ment bank’s op­er­a­tions is pro­posed to re­sult in the es­tab­lish­ment of two dis­tinct en­ti­ties: UGB Hold­ing (which will fully own the ex­ist­ing UGB), and UGB as a whole­sale con­ven­tional bank gov­erned by the Cen­tral Bank of Bahrain (CBB).

UGB Hold­ing is pro­posed to be listed on the Bahrain Bourse, while UGB is pro­posed to be delisted. UGB Hold­ing will ul­ti­mately fully own UGB and other core in­vest­ments cur­rently held un­der the bank, while in the fi­nal struc­ture UGB will re­tain the reg­u­lated bank­ing ac­tiv­i­ties and will thus con­tinue to hold its stake in the Kuwait-based KAMCO In­vest­ment Com­pany as a sub­sidiary.

This re­align­ment has been ap­proved in prin­ci­ple by the CBB and is sub­ject to the ap­proval of share­hold­ers and other reg­u­la­tory au­thor­i­ties. Com­ment­ing on this mat­ter, Faisal Al-Ay­yar, KIPCO’s Vice Chair­man (Ex­ec­u­tive), said: “KIPCO’s strat­egy to con­stantly seek ways to stream­line our op­er­a­tions has kept us lean and ef­fi­cient across the Group. The cre­ation of a hold­ing com­pany listed on the Bahrain Bourse will al­low UGB to fo­cus its op­er­a­tions on in­vest­ment bank­ing as a core line of busi­ness. In turn, the hold­ing com­pany will hold the other in­vest­ments, such as UGB’s stakes in Bur­gan Bank, United Real Es­tate, TAKAUD Sav­ings and Pen­sions and other in­vest­ments. The strate­gic cre­ation of these two dis­tinct lines of busi­ness will serve to en­hance per­for­mance and in­crease ef­fi­ciency down the line.”

The KIPCO Group is one of the big­gest hold­ing com­pa­nies in the Mid­dle East and North Africa, with consolidated as­sets of $33 bil­lion as at 30 June 2017. The Group has sig­nif­i­cant own­er­ship in­ter­ests in over 60 com­pa­nies op­er­at­ing across 24 coun­tries. The group’s main busi­ness sec­tors are fi­nan­cial ser­vices, me­dia, real es­tate and man­u­fac­tur­ing. Through its core com­pa­nies, sub­sidiaries and af­fil­i­ates, KIPCO also has in­ter­ests in the ed­u­ca­tion and med­i­cal sec­tors. Faisal Al-Ay­yar

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