Immediate Release

KIPCO announces intent to merge with Qurain Petrochemical Industries

'Combined entity would be a larger market capital and a more diversified portfolio' says company's

Group CEO

Kuwait City, 14 March 2022: KIPCO - Kuwait Projects Company (Holding) - has announced reaching a preliminary agreement to merge by amalgamation with Qurain Petrochemical Industries Company (QPIC). The two companies signed a Memorandum of Understanding (MoU) whereby they agreed to assess the merger proposition.

As per the MoU agreement, KIPCO shall be the merging entity and QPIC shall be the merged entity.

The merger is subject to a detailed process as per Kuwaiti laws and regulations. This includes due diligence, valuation of both entities and fairness opinion by licensed independent advisors, in addition to regulatory approvals and the approval of stakeholders including the Extraordinary General Assembly of both parties.

The merger proposition combines the two companies to form a larger investment holding that would rank among the largest in the MENA region.

Furthermore, the combined entity would benefit from a balanced and diversified portfolio of assets that includes petrochemical and oil services, banking, foodstuff, insurance and others. This creates a more stable income stream.

Sheikha Dana Nasser Sabah Al Ahmad Al Sabah, KIPCO's Group Chief Executive Officer, said:

"Looking ahead, we see an opportunity to create a stronger investment holding company that would capitalize on operational synergies between KIPCO and QPIC. The combined entity would have the ability to pursue opportunities in new sectors and continue to support the growth of its existing portfolio, thereby creating greater value for all of the shareholders."

Mr Sadoun Ali, QPIC's Vice Chairman and Chief Executive Officer, said:

"At QPIC, we always look for opportunities to create better value for our shareholders. This has proven true through our policy of revenue diversification, which has reflected positively on our growth in past years. This may also be the case in this potential opportunity, once the independent investment advisor's report is completed, as per the requirements of the Capital Markets Authority and related authorities in Kuwait."

-  Ends -

Notes to Editors:

Kuwait Projects Company (Holding) - KIPCO - is a holding company that focuses on investments in the Middle East and North Africa. Its strategy of acquiring, building, scaling and selling companies in the MENA region has worked successfully for over 30 years.

KIPCO's main business sectors are financial services, media, real estate and industry. KIPCO's financial service interests include holdings in commercial banks, insurance companies, asset management and investment banking.

Further information:                            

Eman Al Awadhi                Group Senior Vice President

Corporate Communications & Investor Relations

T: +965 2294 3416

                                       M:+965 6033 6399

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