Mubasher: First Takaful Insurance (FTI) expects the proceeds from selling its 35% stake in Turkey’s Neova Sigorta Insurance Company to range from KWD 11.5 million to KWD 13.1 million.

The transaction is likely to be completed in three to six months, according to a statement to the Kuwaiti stock exchange on Tuesday.

The financial impact from the transaction could initially lead to a higher cash liquidity and less investment in the Turkish affiliate company. Shareholders’ rights are also expected to decrease by KWD 100,000 to KWD 1.6 million.

Furthermore, net final impact will depend on the transaction’s expenses and fees, as per the laws in Turkey, as well as the exchange rate of the Turkish lira at that time.  

On 6 February, the insurance firm announced the signing of a preliminary agreement to sell its 35% stake in Neova Sigorta.

It is worth mentioning that during the first nine months of 2019, First Takaful’s profit grew to KWD 826,240, compared with KWD 809,040 in the same period of the year before.