Investment Dar eyes stake sale

STAKE SALE: Investment Dar is considering selling a stake in the company to international investors. (Getty Images)

Kuwait's Investment Dar said on Tuesday it might consider selling a minority stake to an investor after being approached by international banks last year.

"We have been approached by investment banks... [but] we are currently not in [any] talks. Dar might look at any offer," Executive Vice President Amr Abou El-Seoud told newswire Reuters, adding that it was up to the shareholders to decide.

The Islamic investment firm, which bought half of British luxury carmaker Aston Martin in 2007, had been approached more than six months ago for a minority stake buy. He declined to name the banks.

"The point here [is that] it is not Dar that is selling, it is the shareholders' decision," he added.

Kuwaiti newspapers have repeatedly reported that international investors might be interested in buying a stake, possibly through a capital hike, in the firm, which is riding a boom with Islamic investment products.

El-Seoud said Investment Dar, which buys into companies, was still considering a capital increase as initially announced in September but no decision had been taken yet.

"We are still studying it," he said.

In Kuwait, companies often try to bring foreign investors aboard by conducting a capital hike after they have sounded out shareholders. Such stake sales often involve the board and shareholders both being consulted.

Dar's major shareholders are a Kuwait state welfare fund holding 8% and a real estate firm which has a 30% stake, according to the Kuwait bourse website.

Investment Dar expects further profit growth in 2008 after posting a 37% jump in net profit last year, El-Seoud said.

"We are not expecting any decline... We're a growth company," he said when asked about a profit forecast for this year, declining to be more specific.

El-Seoud reiterated that discussions to set up an aircraft finance business involving plane makers Airbus and Boeing were still on hold after talks were held last year.

"It is all on pause. Talks were held for a period of time," he added.

"It was [talks] with both, but no direct talks, it was through one of the large international companies who deals with them," El-Seoud said.

Kuwaiti daily Al-Rai said in June that Investment Dar was in advanced talks with Airbus to set up a firm to fund aircraft purchases. (Reuters)

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