Mubasher: Al Aman Investment, which is a subsidiary of The Securities House, on Thursday announced it has completed the acquisition of a local company specialised in the education field through investing in a joint venture (JV), First Education Company (FEC).
The transaction has been implemented at a value of KWD 18 million, in which Al Aman holds a 50% stake in FEC, according to a bourse filing.
The JV has arranged the payment process based on paying 20% of the acquisition’s value of KWD 3.6 million, and financing 55% of the value through getting KWD 9.9 million credit facilities from one of the banks, Al Aman Investment, listed on Boursa Kuwait, said.
The company will pay the remaining 25% of the transaction’s value of KWD 4.5 million a year after the acquisition.
The Kuwait-listed firm guarantees a 50% interest in financing and postponed payment in the JV worth a total of KWD 7.2 million.
The financial impact of the acquisition is represented in lower liquidity, versus registering around KED 1.8 million in investments in the JV, representing Al Aman’s 50% stake in the joint project.