Kuwait investors eye BBK stake
by This email address is being protected from spam bots, you need Javascript enabled to view it on Saturday, 25 August 2007
Several Kuwaiti investors are considering buying Commercial Bank of Kuwait's stake in a Bahraini lender, an official at Zumorroda Investment Co, which is mandated to arrange the sale, said on Saturday.
Commercial Bank, Kuwait's fourth-largest lender by market value, plans to sell its stake of just over 20 % in Bank of Bahrain and Kuwait (BBK) at 525 Kuwaiti fils per share, a CBK official said last week.
BBK shares closed at 510 fils on Saturday, up 2 %. There are 1,000 fils to the dinar.
"We have several Kuwaiti clients in asset management that are willing to buy CBK's 20 % stake in BBK," said a senior official at Zumorroda, who declined to be identified or name the investors.
Pearl of Kuwait Real Estate Co, which is controlled by Zumorroda Investment's parent firm Zumorroda Holding, said on Saturday it was willing to sell its 3.25 % stake to Commercial Bank at the same price.
"There is a two-way offer on the table," the Zumorroda official said.
"Pearl is also willing to sell at the same price to CBK. We are now waiting for CBK's official response on whether it wants to buy or sell. We've been hearing their intention is to sell," the official said, adding that CBK has until Wednesday to make its decision.
Zumorroda Investment's shareholders include Kuwait's Gulf Bank and KIPCO Asset Management Co, neither of which are involved in the transaction, the official added.
Shares of Commercial Bank rose 2.86 % on Saturday, the biggest gainers among the 10 largest stocks.
READERS' COMMENTS
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST BANKING & FINANCE
TOP MIDDLE EAST BUSINESS STORIES
ALSO IN MIDDLE EAST BANKING & FINANCE
LATEST MIDDLE EAST BUSINESS NEWS
- Politics & Economics: European bank shares plunge on Dubai debt concerns
- Politics & Economics: Moody's cuts Dubai GRI ratings amid debt delay
- Politics & Economics: Job losses seen slowing in UAE - StanChart
- Transportation: Abu Dhabi transport chiefs give Eid gift to motorists
- Banking & Finance: Cost of insuring Dubai's debt rises further
SHARE PRICE CHECK
RELATED STORIES
Bank of Bahrain & Kuwait
- Bahrain central bank moves to limit banks' property exposure
30 Jul '09 | News - Bahrain's Capinnova to co-invest in $50m retail sector project
27 Jun '09 | News - Kuwait's Global offloads $17m stake
15 Feb '09 | News
Commercial Bank of Kuwait (CBK)
- Commercial Bank of Kuwait Q2 net loss at $8.2m
25 Jul '09 | News - Kuwait's CBK reduces activity of investment unit - paper
2 Jul '09 | News - Kuwait's KIA to auction stake in Boubyan
22 Jun '09 | News




