Kuwait Projects Co (KIPCO) raised its stake in United Real Estate Co (URC) to 60.4 percent on Tuesday, effectively making it a subsidiary of Kuwait's largest investment firm.
KIPCO firm did not provide a value for the transaction but added it expected the deal to have a positive impact on its financial results. URC has a market capital of about $413.70m according to Reuters data.
"The firm (KIPCO) states that it acquired 33.11 percent in URC through one of its portfolios and therefore raised KIPCO's stake to 60.4 percent... turning URC to a subsidiary," KIPCO said in a statement on the Kuwaiti bourse website on Tuesday.
KIPCO, which controls assets worth about $19bn, posted a 1.6 percent rise in its third-quarter net profit to KD21.5m ($77m).
KIPCO's shares were flat at 0.46 dinar at 0845 GMT, while URC's shares were down 1 percent on the Kuwaiti bourse.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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