Kamco Invest, a regional non-banking financial powerhouse, acted as the Partial Purchase Offer Manager to Qurain Petrochemical Industries Company (QPIC) in purchasing a key stake in leading Kuwaiti group Advanced Technology Company (ATC).
A major distributor and marketer of healthcare products and services, ATC caters to nearly 1000 customers in the Kuwait region including dental practitioners and laboratories, physician practices and animal health practices, as well as government and other institutions.
Announcing its key role in the deal, Kamco Invest said the transaction involved QPIC offering the shareholders of ATC a total of 13.5 million shares, representing 9% of the company's stake at a price of 500 fils per share.
This transaction marks the first acquisition by way of Partial Purchase Offer completed in Kuwait pursuant Module 9 (Merger and Acquisition) of the Executive Bylaws of Law No. 7 of 2010 regarding the establishment of the Capital Markets Authority (CMA) and its Executive Bylaws, as amended, it stated.
This Partial Purchase Offer is in line with QPIC’s strategy to diversify its investments, while simultaneously focusing on the healthcare sector as one of the defensive sectors, it added.
Abdullah M. AlSharekh, Managing Director of Markets and Investment Banking at Kamco Invest, said: "This marks the first Partial Purchase Offer transaction in Kuwait, following the recent amendments on the Executive Bylaws concerning partial purchase transactions."
The amendments now permit shareholders to purchase additional stake in the company by a minimum of 5% to increase their holdings to reach between 30% to 50% of the company’s capital. Through its role, Kamco Invest contributed to the seamless and successful execution of the Partial Purchase pursuant to the guidelines and timeline stipulated by the regulatory authorities," he added.
With this transaction, Kamco Invest’s total investment banking mandates has risen to a cumulative value of over $29.7 billion since inception; across equity capital markets, debt capital markets and mergers and acquisitions.
The Investment Banking team advised on deals in Kuwait, Egypt, United Arab of Emirates, Saudi Arabia, Oman, Jordan, and Bahrain.
Mohamed Sherif El-Rafie, Executive Director of Equity Capital Markets at Kamco Invest, said: "This is a testament to the commitment we uphold to provide our clients with innovative and custom-tailored solutions that aid them in achieving their financial and strategic goals."
"The success of this transaction would not have been possible without the continuous support of Boursa Kuwait and Kuwait Clearing Company, the oversight of the Capital Markets Authority, as well as the cooperation of all parties involved including the legal advisor Al-Hossam Legal – Al-Turqi & Partners Legal Consultants & Attorneys," he added.
A major player in the regional financial sector, Kamco Investment Company is an independently managed subsidiary of Kipco Group regulated by the Capital Markets Authority and Central Bank of Kuwait.
It has over $16 billion of assets under management as of March 31, 2022 allocated to various asset classes and jurisdictions, making it one of the largest asset managers in the region.