KUWAIT CITY: KIPCO – Kuwait Projects Company (Holding) – announced that it has entered into a binding implementation agreement to arrange for an off-market trade with Fairfax Financial Holdings to sell KIPCO’s 46.32% stake in Gulf Insurance Group (GIG).
The price per share is KD 2 for a total of KD 263.7 million (US$ 860 million) from which will be deducted KIPCO’s share of cash dividends that may be distributed by GIG for 2022.
Fairfax Financial Holdings Limited is a Canadian financial holding company based in Toronto, Ontario, engaged in property, casualty, insurance and reinsurance, investment management, and insurance claims management.
The deal is contingent on the buyer obtaining the necessary regulatory approvals and, depending on the timing of the execution of the off-market trade, profit from the sale is expected to be in the range of KD 70-80 million.
The announcement was made by KIPCO’s Board Member and Group Chief Executive Officer, Sheikha Dana Naser Sabah Al Ahmad Al Sabah, during the company’s Annual General Assembly Meeting. The AGM witnessed the election of the Board of Directors for the next three-year term.
Commenting on the agreement, Sheikha Dana said: “As a holding investment company, KIPCO’s strategy is to acquire, scale and exit companies when the time is opportune. This deal is the culmination of three decades of value creation and growth. Our journey in the insurance business has been a journey of success.
Since becoming our partners in 2010, we have worked with Fairfax Financial to build a strong insurance provider that operates in 13 markets. We believe that the company will continue to grow under Fairfax Financial and will remain a leading player in the MENA insurance market.”
Following the AGM, KIPCO’s Group CEO presented a review of the company’s activities in 2022 and its outlook for 2022 to an audience of shareholders, financial analysts and institutional investors.
KIPCO’s Group CEO said: “The positive performance delivered by our core companies during the year has contributed to our efforts to ensure that KIPCO is a streamlined investment holding company that is both efficient and effective.
Moving into 2023, several measures have been taken to minimize the impact of market volatilities and high interest rates, and we are confident that we have put in place a strong base that will allow us to move towards a more promising and sustainable future.”
Kuwait Projects Company (Holding) – KIPCO – is a holding company that focuses on investments in the Middle East and North Africa. Its strategy of acquiring, building, scaling and selling companies in the MENA region has worked successfully for over 30 years.
KIPCO’s main business sectors are financial services, energy, media, real estate, industry and education. KIPCO’s financial service interests include holdings in commercial banks, insurance companies, asset management and investment banking.
Gulf Insurance Group (GIG) was established in 1962.It is a public shareholding company listed on Boursa Kuwait and a consistent market leader in Kuwait in terms of premiums written.
Gulf Insurance Group (GIG) is one of the leading private insurers with a strong competitive market position in Kuwait, Jordan, Bahrain and Egypt.
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