Kuwait-Mubasher: Burgan Bank has sold its entire 51.19% stake in Jordan Kuwait Bank for a subsidiary of Kuwait Projects Company Holding (KIPCO), the company said in a bourse statement.
The exit deal aims at raising the bank’s capital in order to maximise revenues and prepare against possible risks.
KIPCO owns 47.88% stake in Burgan Bank.
Burgan said that the sale deal will result in a KWD 500 million decrease in risk-weighted assets, in addition to raising the capital adequacy ratio (CAR) to 15% by the end of 2015.
The bank noted that the deal is being undertaken in two stages; the first is already completed today after 25.46% of the Jordan Kuwait Bank was sold, while the second will be finalised on Thursday by a sale of 25.73%.
