AlQabas reports that the AlKhorafi Group has increased its stake in two Kuwait companies.
- Oula Fuel (KSE Symbol 645): A 40 unit gas and service station chain. Shares were bought from National Investment Company by companies owned by Mahmoud Haidar (Emerald Group) in the amount of 38.2 million shares at KD0.420 per share (roughly KD16 million). But shares were for the AlKharafi Group and other allied investors.
- Gulf Bank (KSE Symbol 102): A major commercial bank in Kuwait. Major owners are the AlGhanem Family, Behbehani, KIA and now shown on the KSE website "Emerald and others". Reportedly, AlKharafi has been buying shares in the KSE and is one of the major shareholders.
AlQ reports that directors at both Oula and Gulf are expected to resign shortly so that AlK and his co-investors can appoint their own candidates to the Boards.
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4 comments:
AlKhorafi are probably moving on Gulf Bank because they are at the limit of what they can borrow from NBK.
Isn't every good Kuwaiti in the same position?
If not with NBK, then with its own bank?
That's why Zain is selling its African empire and paying big dividends to shareholders.
Care to speculate on what happened at MAK to get them into this overextended position?
At MAK overexpansion - borrowed short term to fund long term projects(Even bought power generators before actually winning contract to build). Understand NBK are helping MAK (and themselves) by rolling over the credit facilities with 5 year terms to give time to pay and to help NBK avoid taking provisions.
It is interesting NBK say they have no exposure to Investment Companies - yet they have exposure to NIG which the rating agencies classify as an investment company and even NBK Capital treats as an investment company.
Advocatus
Thanks.
Maybe it's my lack of real knowledge, but I took the wild expansion at MAK to be a sign of a change of approach.
If that's the case, the question is what motivated it? AlJayl AlJadid?
As to NIG, I understand this is a different company than NIC
شركة الاستثمارات الوطنية
NIC is registered with the Central Bank as an investment company. As far as I know, NIG is not.
So the answer may be technically correct, though as you point out it is an investment company. Sort of like the many "industrial" companies in Kuwait whose main activity is punting the stock market.
I believe that MAK own their stake in NIG though AlKhayr.
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