Published: May 12, 2010
Kuwaiti investors to buy chemical company.
Financial services specialist SHUAA Capital is to sell its stake in chemical business Al Kout Industrial Projects to a group of Kuwaiti investors.
The struggling group is disposing of its 48.69% stake in the Kuwait-based business as part of its turnaround plan and hopes to make more than US$50mn from the sale.
SHUAA bought its stake in Al Kout four years ago and is close to ending its interest in the company after the Kuwait Stock Exchange approved a potential sale.
Sameer Al Ansari, SHUAA’s chief executive, said the group made it clear earlier in the year that it wanted to focus on its fee-generating businesses.
“Our heritage principal investments, including our stake in Al Kout, fall outside of our new strategy,” he added. “We continue to look to sell other non-core assets, and are very encouraged by the fact that market sentiment has improved and deals are being done at sensible valuations.”
Dubai-based SHUAA has interests in investment banking, asset management, brokerage and private equity, while Al Kout produces chlorine, hydrochloric acid, caustic soda and other related chemicals for industries including water treatment, food manufacturing and oil drilling.