Business | General

National Industries considers stake sale

Kuwait's National Industries Group Holding, the country's biggest industrial conglomerate by market value, might sell a 10 per cent stake to a foreign investment bank, its chairman said on Tuesday.

  • Reuters
  • Published: 00:36 May 7, 2008
  • Gulf News

Kuwait City: Kuwait's National Industries Group Holding, the country's biggest industrial conglomerate by market value, might sell a 10 per cent stake to a foreign investment bank, its chairman said on Tuesday."We have offers, one offer is to pay more than 35 per cent of the market price," Sa'ad Al Sa'ad told Reuters, declining to identify the bidders.

He said a decision may come in September but would first require approval by Kuwaiti authorities given that National Industries was a state-owned company. A 10 per cent stake in the company would be worth about $775 million, according to Reuters data.

"We want a good partner. A good international partner will strengthen our capabilities in the international markets," Sa'ad said, adding that the firm was eyeing a foreign investment bank.

Alternatives

Alternatively, the firm, which invests in industrial projects mainly in the Middle East, is also considering selling Islamic bonds, or sukuk, which could later be converted into shares or global depositary receipts (GDRs) by a future partner.

"We are looking at GDRs, convertibles or direct partnership," he said, declining to say how much the company might raise.

Sa'ad said in October the company, which has diversified away from its core construction materials business by investing in petrochemicals, engineering and metal industries projects, wanted to invest 800 million Kuwaiti dinars to one billion dinars.

National Industries said it would wait until credit markets improved before continuing a sukuk issue worth up to $1.5 billion, which was unveiled in July.

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