KIPCO's stake is part of a 51% stake in Wataniya being sold for a total consideration of Kuwaiti dinar 1.1 billion ($3.72 billion).
The transaction will considerably strengthen KIPCO's financial profile and releases capital for further investments. It will, however, temporarily reduce the diversity of KIPCO's portfolio and increase uncertainties about potential future acquisition and execution risk. Such risk is common for operating holding companies, which are expected to rotate assets on a recurring basis. Accordingly, Standard & Poor's is comfortable with KIPCO's investment strategies and strong track record of value recognition. We expect KIPCO to use the proceeds from the sale for further investments.
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Kuwait Projects Co. (Holding) K.S.C. ratings unaffected by sale of stake in mobile telco
- Kuwait: Tuesday, March 06 - 2007 at 07:53
- PRESS RELEASE
Standard & Poor's Ratings Services said today that its ratings on Kuwait-based holding company Kuwait Projects Co. (Holding) K.S.C. (KIPCO) (BBB-/Positive/A-3) are unaffected by an announcement that the company will sell its 37 per cent stake in Kuwait-based mobile telephony operator National Mobile Telecommunications Co. K.S.C. (Wataniya) to Qatar Telecom QSC.
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Analyst Contacts:Andreas Kindahl, Stockholm
Patrice Cochelin, Paris
Industrial Ratings Europe
Posted by Anne-Birte Stensgaard, Senior News EditorTuesday, March 06 - 2007 at 07:53 UAE local time (GMT+4)
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This article was updated on Thu Apr 12 2007.
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