On June 1, 2022, Al-Safat Investment Company K.S.C.P., a publicly listed company on Boursa Kuwait, announced that it had reached a preliminary agreement to merge by amalgamation with Cap Corp Investment Company K.S.C.C., an unlisted company. Upon the completion of the merger process, Cap Corp Investment Company K.S.C.C. will be dissolved, while the shares of Al-Safat Investment Company K.S.C.P. will continue trading.
The merger between Al-Safat Investment Company K.S.C.P. and Cap Corp Investment Company K.S.C.C. is subject to a comprehensive process in accordance with Kuwaiti laws and regulations. This process encompasses various steps, such as conducting due diligence, obtaining an independent assets valuator report, obtaining an independent investment advisor report, as well as securing the necessary regulatory approval and stakeholder approvals through an extraordinary general meeting for both parties.
Based on the independent asset valuator report, the indicative swap ratio for each (1) share of Cap Corp Investment Company will be half (0.5) that of Al-Safat Investment Company share.
Al-Safat Investment Company, shall increase its capital by issuing 100,000,000 shares to be allocated to Cap Corp Investment Company’s shareholder. Al Safat Investment Company shareholders will waive their priority right to subscribe to the capital increase
The objective of the merger is to form a prominent investment company by expanding its market share and broadening its client base. The post merger entity will benefit from a balanced and diversified asset base, which includes cash generating investments that will create a more stable and reliable income stream in the future.
Al-Safat Investment Company is a Sharia-compliant investment company listed on Boursa Kuwait. The company’s main focus is acquiring strategic investments in selective enterprises, industries and investment-vehicles seeking growth and capital appreciation in accordance with the provisions of Islamic Sharia. The company’s investments is diversified among financial, real estate and industrial sectors
Al-Safat Investment Company is a Sharia-compliant investment company listed on Boursa Kuwait. The company’s main focus is acquiring strategic investments in selective enterprises, industries and investment-vehicles seeking growth and capital appreciation in accordance with the provisions of Islamic Sharia. The company’s investments is diversified among financial, real estate and industrial sectors
KPMG was appointed as an asset valuator to determine the merger swap ratio as of March 31, 2022. The asset valuator report was based on the audited financial statements of both companies for the years ending December 31, 2021 and 2020; The companies interim statements for the period ending March 31, 2022; publicly available information; and meetings and discussions with the management of the two companies.
ØBased on the independent asset valuator report, the indicative swap ratio for each (1) share of Cap Corp Investment Company will be half (0.5) that of Al-Safat Investment Company share.
The Board of Directors of Al-Safat Investment Company and Cap Corp Investment Company have concluded that the merger will yield a favorable outcome, serving the best interest of their respective shareholders. The merger aims to achieve the following objectives:
