Qurain Petrochemical Industries Company’s (QPIC) Board of Directors has approved the asset valuation report and the independent investment advisor’s fairness opinion on its merger with Kuwait Projects Co (Kipco).

 

Last March, the two companies signed an agreement to assess a potential merger that would create a firm with a market value of $2.7 billion.

 

QPIC had reached a preliminary agreement with Kipco to merge by amalgamation, whereby Kipco would be the merging entity and QPIC the merged entity. 

 

Share swap ratio

The fairness opinion report includes the share swap ratio that QPIC shareholders will receive in Kipco’s capital as a result of the merger. The completion of the merger is subject to the approvals from the Capital Markets Authority, the Ministry of Commerce and Industry, the Kuwait Competition Protection Authority as well as the shareholders through convening Extraordinary General Assemblies for the two companies.

 

Commenting on the announcement, Sheikh Sabah Mohammad Abdulaziz Al-Sabah, QPIC’s Vice-Chairman and Chief Executive Officer, said: “The Board of Directors of QPIC continues to explore business opportunities that would result in further diversification of the group’s portfolio in a way that enhances its performance and maximises shareholders’ interests. 

 

“We expect the proposed merger to create a larger, more diversified and dynamic investment entity that is capable of withstanding and keeping pace with the different economic and global challenges that may arise in the future.”-- TradeArabia News Service