Published: September 3, 2012
Kuwaiti investment company gets green light to separate businesses.
Shareholders in Kuwait’s Global Investment House have approved a restructuring plan that could turn around the fortunes of the indebted investment company.
At its annual general meeting, executives confirmed plans to separate Global’s core fee businesses from its non-core assets and transfer its debt obligations. The move will still need approval from bank and bond creditors.
Such a deal would mean that Global’s core business comprised an existing asset management operation with assets of some US$3.5bn, investment banking and brokerage businesses. The separated entity would comprise most of its non-core principal investment and real estate assets, which are already pledged to secure existing debt.
If approved by creditors, existing shareholders would own about 30% of Global with the balance owned by one or more special purpose entities, which would also take on about US$1.7bn of the company’s debt.