Kuwait to sell Bank of Bahrain stake to Zumorroda

Commercial Bank of Kuwait to offload stake for $278mn to Kuwaiti investment firm.
Kuwait to sell Bank of Bahrain stake to Zumorroda
By Reuters
Thu 23 Aug 2007 04:44 PM

Commercial Bank of Kuwait (CBK) plans to sell its stake in Bank of Bahrain and Kuwait to Zumorroda Investment, a CBK official said on Thursday.

Kuwait's fourth-largest lender by market value is selling its stake of just over 20% at 525 Kuwaiti fils per share, said the official, who did not want to be identified. That would value the transaction at about 71.18 million dinars ($278 million).

Zumorroda Investment's shareholders include Kuwait's Gulf Bank and KIPCO Asset Management (KAMCO), according to a profile of the company on the website, kuwaitculture.com.

Commercial Bank said on Wednesday it was in the final stages of talks on selling its stake. It did not name the buyer.

Commercial Bank will reach agreement next week to sell the stake to Zumorroda, Al-Qabas newspaper reported on Thursday.

The stock closed in Kuwait on Wednesday at 500 fils and last traded in Bahrain on Thursday at 674 Bahraini fils ($1.79).

Zumorroda officials could not be reached for comment.

Commercial Bank will make a profit of 16 million Kuwaiti dinars from the sale, Al-Qabas reported, without saying how it got the information. The CBK official declined to comment on the figure.

Zumorroda is seeking to increase its stake in Bank of Bahrain and Kuwait to 35%, the newspaper said.

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