NBK
NBK`R
NBK`R
National Bank of Kuwait, the largest Kuwaiti bank, announced Wednesday that it has agreed to sell its 30% in its Qatari associate, International Bank of Qatar (IBQ), to Qatari investors in a transaction worth $ 538 million (KD155 million) and generating a gain of $ 87 million (KD25 million) that is expected to be reflected in 2014 results. The sale is subject to customary conditions including regulatory approvals.
Nasser Al Sayer, NBK Chairman, said the transaction is in line with NBK's strategy of owning and managing controlling stakes in entities in the MENA region with more focus on GCC markets. "We have decided to exit this partnership as we saw limited opportunity to increase our 30 percent ownership in IBQ to a controlling stake. This sale will also strengthen our capital position to pursue our regional expansion strategy and benefit from any opportunity in Qatar or any of the other GCC markets."
"NBK's investment in IBQ has been very successful, lasting more than 10 years and now we are exiting at an attractive price and after achieving excellent returns over the years. We have been operating in the Qatari market for years and benefited from a decade of strong economic growth. The Qatari market will continue to be an important market for us as we remain focused on GCC expansions but the emphasis is on having controlling stakes," he added.
Isam Al-Sager, NBK Group CEO, noted that the bank's investment in IBQ was successful. "We view this transaction as a fruitful exit from a long term investment. NBK has achieved excellent returns from its investment in IBQ – not only from the gain generated from the sale, but also from a decade of profit contribution from IBQ as an associate of the Group."
Al-Sager also said the transaction will allow NBK to be more opportunistic in reallocating its freed capital resources into controlling stakes in order to achieve further integration and synergies on the Group level creating shareholders' value.
Al-Sager added "we are very satisfied with IBQ 's accomplishments over the years. Following the acquisition of the aforementioned 30 percent stake, NBK has managed IBQ and transformed the bank into one of the main players in the Qatari banking market."
National Bank of Kuwait acquired a 20% stake in IBQ in 2004 and increased its stake to 30% in 2007 and had been managing the bank.
NBK enjoys the widest banking presence with an international network. NBK's international presence spans many of the world's leading financial centers including London, Paris, Geneva, New York and Singapore, as well as China (Shanghai). Meanwhile, regional coverage extends to Lebanon, Jordan, Iraq, Egypt, Bahrain, Saudi Arabia, the UAE, and Turkey. NBK continues to enjoy collectively the highest ratings from the three international rating agencies Moody's, Fitch Ratings and Standard and Poor's. NBK was also named among Global Finance's list of the 50 safest banks in the world for the ninth consecutive time.
Nasser Al Sayer, NBK Chairman, said the transaction is in line with NBK's strategy of owning and managing controlling stakes in entities in the MENA region with more focus on GCC markets. "We have decided to exit this partnership as we saw limited opportunity to increase our 30 percent ownership in IBQ to a controlling stake. This sale will also strengthen our capital position to pursue our regional expansion strategy and benefit from any opportunity in Qatar or any of the other GCC markets."
"NBK's investment in IBQ has been very successful, lasting more than 10 years and now we are exiting at an attractive price and after achieving excellent returns over the years. We have been operating in the Qatari market for years and benefited from a decade of strong economic growth. The Qatari market will continue to be an important market for us as we remain focused on GCC expansions but the emphasis is on having controlling stakes," he added.
Isam Al-Sager, NBK Group CEO, noted that the bank's investment in IBQ was successful. "We view this transaction as a fruitful exit from a long term investment. NBK has achieved excellent returns from its investment in IBQ – not only from the gain generated from the sale, but also from a decade of profit contribution from IBQ as an associate of the Group."
Al-Sager also said the transaction will allow NBK to be more opportunistic in reallocating its freed capital resources into controlling stakes in order to achieve further integration and synergies on the Group level creating shareholders' value.
Al-Sager added "we are very satisfied with IBQ 's accomplishments over the years. Following the acquisition of the aforementioned 30 percent stake, NBK has managed IBQ and transformed the bank into one of the main players in the Qatari banking market."
National Bank of Kuwait acquired a 20% stake in IBQ in 2004 and increased its stake to 30% in 2007 and had been managing the bank.
NBK enjoys the widest banking presence with an international network. NBK's international presence spans many of the world's leading financial centers including London, Paris, Geneva, New York and Singapore, as well as China (Shanghai). Meanwhile, regional coverage extends to Lebanon, Jordan, Iraq, Egypt, Bahrain, Saudi Arabia, the UAE, and Turkey. NBK continues to enjoy collectively the highest ratings from the three international rating agencies Moody's, Fitch Ratings and Standard and Poor's. NBK was also named among Global Finance's list of the 50 safest banks in the world for the ninth consecutive time.
Source:
Press Release
