Kuwait: Al Ahleia Insurance makes offer for Kuwait Re's shares
Source: Middle East Insurance Review | Jul 2015
Al Ahleia Insurance Company has made a compulsory offer to buy the remaining shares of Kuwait Re that it does not yet own. The offer price is KWD0.20 (US$0.65) per share, said the insurer in its offer document.
Al Ahleia currently holds a stake of 30.474% in Kuwait Re. Previously, it held 29.998% of the stock. It increased the shareholding to 30.032% on 5 March this year and further raised its holding to 30.474% on 10 May, thus triggering the compulsory takeover offer.
The offer period started on 16 June and will end on 16 July. Both companies are listed on the Kuwait Stock Exchange.
According to capital market regulations, anyone who wants to buy 30% or more of the shares of a listed company or owns such a proportion of shares and wants to buy more, has to submit a compulsory offer to buy all the stock of all who are interested in selling their shares at the same price and with the same conditions.
Established in 1962, Al Ahleia is the fourth-largest insurer in Kuwait. Kuwait Re was established in 1972 and its capital consists of 150 million shares totalling KWD15 million. Its other major shareholders are Trans-Atlantic Insurance of New York with a stake of 40%, Kuwaiti Company for Investment (10%) and by Kuwait Insurance Company (5%).
KWD1 = US$3.31