KIPCO Clarifies UGB Purchase of Burgan Bank Shares

Responding to an article in the local press about UGB's potential purchase of Burgan Bank shares, KIPCO kindly set the record straight this morning with an announcement of its own on the KSE.  (Text below.  As always Arabic only).

KIPCO noted that:

1. While UGB had authority to buy up to 20% of BB, the Company was only intending to sell 13% of its BB shares.
2. No profit would be recognized on this transaction.  See below.
3. That it owns 96% of UGB.   

As regards point #2, this makes perfect sense.  No doubt UGB is buying shares at market.  Any profit at the parent only KIPCO level will be eliminated on the consolidation of UGB into KIPCO.'s financials  However, at the individual company level, UGB  has already recognized the profit on the sale of Tunis International Bank to Burgan in the earlier round of "musical assets".  The investment in Burgan is, as we noted earlier, part of recurring pattern of "astute business" of re-investing the proceeds of inter Group asset sales back into  Group companies.  "All in the Family" as they say.

The KSE and BSE might want to look over their respective  list of major shareholders in UGB and revise.  KSE here.  BSE here.   Perhaps, the music is a bit too up tempo to keep up with.

 

 [13:29:6]  ِ.

ايضاح من (مشاريع) بخصوص ما نشر فى احدى الصحف المحلية ‏
يعلن سوق الكويت للاوراق المالية بان شركة مشاريع الكويت القابضة (مشاريع)‏
تود ان توضح بخصوص ما نشر فى احدى الصحف اليومية حول بيع حصة بنسبة ‏
ِ20% من بنك برقان لمصلحة بنك الخليج المتحد ، تفيد الشركة ‏تنوي بيع نسبة ‏
مقدارها 13% من رأس مال بنك برقان الى بنك الخليج المتحد ، علما بان بنك ‏
الخليج المتحد قد حصل على موافقة بنك الكويت المركزي لتملك حصة تصل ‏
الى 20% من رأس مال بنك برقان .‏
كما تفيد الشركة بان بنك الخليج المتحد هي شركة تابعة مملوكة من قبل شركة ‏
مشاريع الكويت القابضة بإجمالي نسبة 96%، وبالتالي لن ينتج عن العملية ‏
المذكورة اي ربح او خسارة .‏