FIMBank plc announced that at its recent Board Meeting it accepted the terms of an offer from Burgan Bank of Kuwait to acquire a substantial shareholding (not less than 33%) at a price of US$1.70 per share through the issue of new shares for cash. This transaction is subject to the completion of a due diligence exercise and customary Regulatory procedures.
Burgan Bank was founded in 1975 and was listed on the Kuwait Stock Exchange in 1984. Burgan Bank is active in the fields of retail, corporate, investment and private banking. Following the privatisation in 1997, Government ownership was reduced from 61% to 10%. Burgan’s largest shareholder is Kuwait Project Company (KIPCO) with a 34.95% equity stake. Burgan has minority shareholdings in Gulf Insurance Company, United Gulf Bank and Arab Financial Services.
KIPCO is involved in 2 main areas of activity – Financial Services and Media & Telecommunications. KIPCO’s holdings in the financial services sector include investments in commercial banks, investment banks, asset management companies and insurance companies namely, United Gulf Bank, Gulf Insurance Bank, Jordan Kuwait Bank, Tunis International Bank and others.