Kuwait Projects Company (Holding) (KIPCO) has successfully concluded the sale of its 46.32% stake in Gulf Insurance Group to Fairfax Financial Holdings Limited. The completion of this transaction follows the receipt of all requisite regulatory approvals.
The deal, valued at KD 256.5 million (US$ 832 million), has yielded a net profit of KD 73 million (US$ 237 million) for KIPCO. Throughout the investment holding period, the transaction has delivered a double-digit internal rate of return.
The price per share was set at KD 2 minus 54 fils, distributed as a dividend for the year 2022.
Sheikha Dana Naser Sabah Al Ahmad Al Sabah, Group CEO of KIPCO, expressed, “KIPCO’s 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.”
She added, “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.”
Furthermore, Sheikha Dana highlighted the strategic benefits of this transaction, stating, “The proceeds of the sale of KIPCO’s stake in GIG will provide liquidity to further strengthen KIPCO’s 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 company’s vision and strategy.”
