KIPCO continues to increase holdings in core companies

The increase of holdings in United Gulf Bank, the Gulf Insurance Company and Burgan Bank follows the announcement made at KIPCO's annual Shafafiyah ('Transparency') Investor's Forum in May this year, that the company would 'invest in its own success' and increase the total holdings in the paid up capital of each of its core companies.

As a result, since the start of 2007, KIPCO has increased its holding in United Gulf Bank from 72% to a current total of 84%, its holding in the Gulf Insurance Company from 35% to a current 62% and its holding in Burgan Bank from 35% to a current 50.1%. The increase in the holding of Burgan Bank means that the Bank is now a subsidiary company of KIPCO Group. Consequently, the Bank's results will now be consolidated within KIPCO's quarterly financial reports.

The increase in holdings will also allow KIPCO greater flexibility in the development of its business in individual countries and at regional level.

KIPCO's Managing Director and CEO, Mr Faisal Al Ayyar said the move was part of the company's broad business strategy:

"This increase in our core company holdings is just part of the strategy I announced at our recent Shafafiyah Investor's Forum. By using some of the funds raised from our sale of Wataniya Telecom to increase our core company holdings, we are investing in our success and gaining official control of the companies. We will decide in the near future whether to increase these holdings further, but whatever our decision on this, we will continue our assessment of investment opportunities within our financial services and media sectors."

"This is an exciting time in the history of this company and I expect to announce further news within the next few months," he said.