KIPCO sells stake in Gulf Insurance Group

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KUWAIT CITY, Dec 27 : Kuwait Projects Company (Holding) announced that it has completed the sale of its 46.32% stake in Gulf Insurance Group (GIG) to a Fairfax Financial Holdings Limiteds group entity. The deals net value came to KD 256.5 million (USD 832 million), with KIPCOs net profit at KD 73 million (USD 237 million). The price per share was set at KD 2 minus 54 fils distributed as dividend for 2022. The deal generated a doubledigit internal rate of return (IRR) during the investment holding period.

Sheikha Dana Naser Sabah Al Ahmad Al Sabah, KIPCOs Group Chief Executive Officer, said: “KIPCOs transformative merger grew our portfolio, and we have since been looking at opportunities for exits and investments with the ultimate goal of growth and greater value-creation for our shareholders. “The sale of GIG to our partners, Fairfax, is yet another example of the success of our long-term strategy of acquiring businesses, scaling them and then exiting when both the timing and the financial rewards are opportune.” Proceeds of the sale of KIPCOs stake in GIG will provide liquidity to further strengthen KIPCOs capital structure and reduce its leverage. It will also allow KIPCO to seek growth opportunities, both in sectors it already operates in, as well as new sectors and business opportunities that are aligned with the companys vision and strategy. (KUNA)

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