The statement stated that, after the deal, the National Investments Company and its group still own a significant stake in Boursa Kuwait Company at a rate of 12.46 percent.
Khaled Walid Al-Falah, Chairman of the Board of Directors of the National Investments Company, said that the partial exit process from Boursa Kuwait Securities Company comes in line with the company’s strategy that was developed by the Board of Directors in order to maintain a thoughtful balance of all the company’s main investments.
He added: “The future outlook for Boursa Kuwait’s performance remains positive in terms of the development of its business models.”
Al-Falah pointed out that “the exit process took place through one of the prestigious investment companies, which in turn cooperated with… National Investments Company To select potential global investors with high financial solvency to sell to, in order to expand the shareholder base of Boursa Kuwait Company, to include prestigious international companies and investment funds with long-term investment thinking.”
He said that the deal will contribute to enhancing the cash balances of the National Investment Company by an amount of no less than 13 million Kuwaiti dinars, offset by a decrease in investments in “financial assets listed at fair value through other comprehensive income.”
He added, “Taking this step by the company makes it able to seize distinctive investment opportunities with attractive returns that directly enhance the company’s revenues.”
This transaction also resulted in a realized profit of 11.8 million Kuwaiti dinars, which was reclassified from the cumulative change in fair value to retained earnings in accordance with relevant accounting standards and policies, noting that this transaction does not have any material impact on the consolidated income statement, according to Al-Falah.
It is noteworthy that the Kuwait Capital Markets Authority had launched the program to privatize Boursa Kuwait Company in early 2019, where the National Investments Company played a major and effective role in forming an investment alliance consisting of several companies, in order to submit to the bidding. Indeed, the alliance won to own 44 percent of Boursa Kuwait Company’s shares for an amount of approximately 19 million Kuwaiti dinars, the General Organization for Social Insurance received 6 percent, and 50 percent was offered for public subscription to citizens.
