First PPO testing the amendment of CMA rules closed successfully by QPIC for 13.5 million shares in ATC. The transactions marks the first acquisition by way of Partial Purchase Offer (PPO) in Kuwait pursuant to the amendment made in November 2021 to Module 9 (Merger and Acquisition) of the Executive Bylaws of CMA Law No. 7 of 2010.
Al Hossam Legal acted as the sole legal advisor for the PPO serving Qurain Petrochemical Industries (QPIC), as the acquiror, and Kamco Invest, as the transaction manager.
A shareholder that owns 30% or less in a listed company must make a mandatory tender offer (MTO) to acquire 100% stake in the listed company in case its stake increases above 30%, with certain list of exceptions due to rights issue, merger, inheritance etc. In November 2021, the CMA issued a new set of rules allowing shareholders to purchase a minimum 5% additional stake to increase their holdings to reach a maximum 50% of the stock without triggering MTO.
The PPO increased the stake of QPIC, a public company listed on Boursa Kuwait, by additional 9% stake in Advanced Technology Company (ATC), also a public company listed on Boursa Kuwait.
The CMA made a special public announcement of the successful closing of this first PPO, paving the way and encouraging similar PPOs for public stocks.