“First stage of Burgan’s regional expansion almost complete,” says Burgan Chairman
“Deal will deliver excellent returns for shareholders,” says UGB’s Managing Director
Kuwait City, 30th March, 2009: Burgan Bank and United Gulf Bank (UGB) today announced that Burgan Bank is completing the purchase of Algeria Gulf Bank and Bank of Baghdad from United Gulf Bank.
The deal – which is part of Burgan’s regional expansion strategy – will take Burgan’s total stake in Algeria Gulf Bank to 60 per cent and its total stake in Bank of Baghdad to 45.31 per cent. Burgan Bank’s expansion strategy - announced in 2008 - involved the purchase of Jordan Kuwait Bank, Algeria Gulf Bank, Bank of Baghdad and Tunis International Bank from UGB.
Burgan Bank Chairman, Mr. Tariq AbdulSalam, said:
“We are delighted to have received the necessary approvals to obtain a majority stake in both Algeria Gulf Bank and Bank of Baghdad. We are confident that the deal will deliver strong growth and significantly increase our presence across the MENA region. This first stage in our aggressive regional expansion strategy is now almost complete.”
UGB’s Managing Director, Mr Masaud Hyatt, said:
“We are delighted that we are finalizing this part of our agreement with Burgan Bank for the sale of our regional operations. The deal will provide an excellent level of return for our shareholders and we look forward to its final completion in the near future.”
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Notes to Editors:
About Burgan Bank
Burgan Bank is a subsidiary of KIPCO (Kuwait Projects Company). The youngest and most dynamic commercial bank in the State of Kuwait, established in 1977, the Bank has acquired a leading role in the retail, corporate and investment banking sector through innovative product offers and technologically advanced delivery channels. It has continuously improved its performance over the years by applying an expanded revenue structure, good asset quality, diversified funding sources and a strong capital base. The adoption of state-of-the-art services and ground-breaking technology has positioned it as a trendsetter in the domestic market. At present it enjoys a wide reach through our network of 21 branches and over 130 ATM's making it one of the widest ATM networks in the GCC.
The brand has been created on a foundation of real values – of trust, commitment, excellence and progression to remind us of the high standards to which we aspire. ‘People come first’ is the foundation on which its products and services are developed and are further augmented by its three pillars of innovative technology, staff competency and customer service. It is committed to offering an enhanced banking experience.
The Bank was recertified and is still the only bank in the GCC with ISO 9001:2000 certification in all its banking businesses. It also has to its credit the distinction of being the only bank in Kuwait to have won the JP Morgan Chase Quality Recognition Award, 10th year in succession and was also acknowledged as the ‘Best Local Private Bank’ in Kuwait in the Fourth Annual Euromoney Private Banking Survey 2007. Further, for two consecutive years, it was conferred the COMMERZBANK Recognition Award, for maintaining high standards of quality, efficiency and reliability while processing Euro currency transactions as well. The Bank’s commitment to uphold best practices was recognized when it won the region’s first Hawkamah-UAB Bank Corporate Governance Award 2007 while its marketing excellence was recognized as amongst the best in the region by the Middle East Business Achievement Awards 2007.
It’s steadily improving financial performance was acknowledged by Standard & Poor’s Ratings Services which revised its outlook on the Bank from stable to positive in addition to affirming its 'BBB+' long-term and 'A-2' short-term counterparty credit ratings on the Bank. Further, Moody’s Investor Services also upgraded the Bank’s FSR rating from D+ to C- recently Capital Intelligence too acknowledged the improved financial profile and upgraded the Bank’s Financial Strength Ratings from BBB to A-, the Foreign Currency Short Term rating as A2 and the Foreign Currency Long Term rating from BBB to A-
UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment/asset management companies and commercial banks. Its proprietary investments include assets in real estate, private equity, structured products and quoted securities. As of March 2008 assets under management exceed US$ 9.6 billion (year end 2007 US$ 8.5 billion). UGB’s core subsidiaries and associates include: Algeria Gulf Bank, Al Dhiyafa Investment Company, Bank of Baghdad, Jordan Kuwait Bank, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Millennium Finance Corporation, Royal Capital Company, Syria Gulf Bank, Tunis International Bank, United Cable Company, United Gulf Bank Securities Company, United Gulf Financial Services Company, United Industries Company, United Healthcare Company and United Real Estate Company.
UGB and its subsidiary KAMCO have a proven track record of successfully completing around 50 investment banking transactions for its clients since 2001 with an aggregate value of over US$ 7 billion including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and merger and acquisition.
The KIPCO Group is one of the biggest diversified holding companies in the Middle East and North Africa, with assets worth more than US$ 21 billion under management or control. The Group has substantial ownership interests in a portfolio of over 50 companies employing over 8,000 people operating across 21 countries. The company’s main business sectors are financial services and media. Through the subsidiaries and affiliates of its core companies, KIPCO also has interests in real estate, industry, healthcare and the management & advisory sector.
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