KIA sees no con­flict of in­ter­est in KFH-AUB merger

Arabian Business English - - UPFRONT -

Kuwait In­vest­ment Author­ity (KIA), the coun­try’s wealth fund, sees no con­flict of in­ter­est in a po­ten­tial merger be­tween Kuwait Fi­nance House and Bahrain’s Ahli United Bank, it was re­ported.

Kuwait’s Pub­lic In­sti­tu­tion for So­cial Se­cu­rity owns 18.7 per­cent of Ahli United, while the KIA holds 24.1 per­cent of Kuwait Fi­nance House, ac­cord­ing to Bloomberg data. Kuwait’s fi­nance min­is­ter is the chairman of both the Pub­lic In­sti­tu­tion for So­cial Se­cu­rity and the KIA. The role of fi­nance min­is­ter at the two in­sti­tu­tions doesn’t con­sti­tute a con­flict of in­ter­est, local dailiy re­ported, cit­ing the KIA.

Kuwait Fi­nance House and Ahli United said in July they started talks for a po­ten­tial merger that may cre­ate a lender with about $92bn in as­sets. HSBC Hold­ings Plc and Credit Suisse Group AG are as­sist­ing the lenders with the process.

Kuwait Fi­nance House said in 2017 that the KIA con­firmed it ap­pointed an ad­viser to study the fea­si­bil­ity of a pos­si­ble merger be­tween the banks.

KIA chairman Nayef Al Ha­jraf

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