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Landmark US$860 Million Sale by KIPCO of its 46.32% Stake in GIG

Al-Hossam Legal adeptly served as legal advisor to Kuwait Projects Company (KIPCO) in the strategic divestiture of its 46.32% holding in Gulf Insurance Group K.S.C. (GIG). 

The transaction, valued at US$860 million, led to Fairfax increasing its equity interest in GIG from 43.69% to 90.01%, marking a significant shift in ownership.

Executed with meticulous precision through Off-Market Trades, the transaction adhered to the stringent regulatory requirements, securing essential approvals and non-objections from authoritative entities such as the Kuwait Capital Markets Authority (CMA), the Kuwait Competition Authority, the Insurance Regulatory Unit, and Boursa Kuwait.

This transaction is particularly momentous as it represents the inaugural occurrence wherein a non-GCC entity has attained a majority share in a publicly listed company on Boursa Kuwait. This was accomplished in strict conformity with the pertinent legislative frameworks, notably Law 20 of 2000 and the Ministry of Commerce and Industry (MOCI) Resolution 205 of 2000. It thus establishes a significant precedent for foreign investment in Kuwait, extending to all listed companies with the sole exception of banking institutions, where foreign ownership is limited to a 5% threshold without prior sanction from the Central Bank of Kuwait (CBK).

The successful culmination of this landmark transaction bears testament to Al-Hossam Legal’s unparalleled proficiency in navigating complex legal and regulatory landscapes. It not only reinforces the firm’s acumen in high-caliber corporate mergers and acquisitions but also accentuates its instrumental role in transactions promoting and facilitating international investment within the Kuwaiti marketplace and beyond.

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