Kuwait investor to buy a third of Fimbank
Fimbank has accepted an offer from Burgan Bank, Kuwait, to acquire a shareholding of at least 33 per cent in the bank at $1.70 per share, by means of an issue of new shares for cash. The acceptance is subject to a due diligence as well as regulatory...
Fimbank has accepted an offer from Burgan Bank, Kuwait, to acquire a shareholding of at least 33 per cent in the bank at $1.70 per share, by means of an issue of new shares for cash. The acceptance is subject to a due diligence as well as regulatory approval in both Malta and Kuwait, among other things.
Due diligence procedures have already commenced.
Burgan Bank was founded in 1975 and was listed on the Kuwait Stock Exchange in 1984. It is active in retail, corporate, investment and private banking. Following privatisation in 1997, government ownership was reduced from 61 per cent to 10 per cent. The bank's shareholder equity currently stands at $900m. It has market capitalisation of $2,248m and total balance sheet size of $7,644m.
Burgan's largest shareholder is Kuwait Project Company (KIPCO) with a 34.95 per cent equity stake. Burgan has minority shareholdings in Gulf Insurance Company, United Gulf Bank and Arab Financial Services.
KIPCO is involved in two main areas of activity: financial services and media and telecommunications. Its holdings in the financial services sector include investments in commercial banks, investment banks, asset management companies and insurance companies.
The bank's business plan focuses on a significant expansion of the bank's market presence and international footprint through new products in treasury opertions and a substantial increase in international trade and financing activities.
Burgan recorded a profit of $193.6m in 2006, up 31 per cent from the $147.4m the previous year.
Fimbank recently announced an after-tax profit of $7.59 million for 2006, up from $2.7 million the year before.
Due diligence procedures have already commenced.
Burgan Bank was founded in 1975 and was listed on the Kuwait Stock Exchange in 1984. It is active in retail, corporate, investment and private banking. Following privatisation in 1997, government ownership was reduced from 61 per cent to 10 per cent. The bank's shareholder equity currently stands at $900m. It has market capitalisation of $2,248m and total balance sheet size of $7,644m.
Burgan's largest shareholder is Kuwait Project Company (KIPCO) with a 34.95 per cent equity stake. Burgan has minority shareholdings in Gulf Insurance Company, United Gulf Bank and Arab Financial Services.
KIPCO is involved in two main areas of activity: financial services and media and telecommunications. Its holdings in the financial services sector include investments in commercial banks, investment banks, asset management companies and insurance companies.
The bank's business plan focuses on a significant expansion of the bank's market presence and international footprint through new products in treasury opertions and a substantial increase in international trade and financing activities.
Burgan recorded a profit of $193.6m in 2006, up 31 per cent from the $147.4m the previous year.
Fimbank recently announced an after-tax profit of $7.59 million for 2006, up from $2.7 million the year before.