Kuwait Projects Company (Holding) (KIPCO) has announced it has sold its 46.32% stake in Gulf Insurance Group to Fairfax Financial Holdings Limited. The deal’s closing comes after the buyer obtained all necessary regulatory approvals.
The net value of the deal is KD 256.5 million (US$ 832 million), and KIPCO’s net profit is KD 73 million (US$ 237 million).
The transaction generated a double-digit internal rate of return during the investment holding period. The price per share was at KD 2 minus 54 fils, distributed as dividend for 2022.
“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,” said Sheikha Dana Naser Sabah Al Ahmad Al Sabah, group CEO of KIPCO.
“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.
“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.”
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