URC buys into Kuwait building materials company
KUWAIT, 14 days ago
United Real Estate Company (URC), a leading real estate development company in Kuwait, said it has acquired a 39.17 per cent stake in leading Kuwaiti building materials company Insha’a Holding.
A leading player in the Middle East and North Africa (Mena) region, URC said the transaction was made by its wholly-owned subsidiary, United Building Company (UBC), which represents the company’s contracting and building arm.
UBC has been taking serious steps towards its planned expansion and growth to become a leading company in its field, remarked URC’s chairman Tariq AbdulSalam.
The deal, he stated, represents the company’s first acquisition in the building and construction sector, and comes as a step towards the implementation of URC’s new strategy.
"The focus will be on creating a balance in the sources of income and structuring a diversified portfolio of assets and various businesses that achieve a steady and sound rate of return," noted AbdulSalam.
Commenting on the deal, Ahmad Kasem, URC’s deputy chief executive officer, said that the acquisition was aligned with the company’s strategic direction to build and support its subsidiaries, in addition to enhancing their respective operating profits and diversifying its sources.
Kasem also stated that the acquisition will lead to further operational efficiency for UBC, as Insha’a has outstanding activities in readymix concrete, building materials, construction chemicals and manufacturing, which will add greater value and complement the construction and engineering expertise of the company.
URC’s chief investment officer Augostino Sfeir pointed out that the deal was in line with URC’s and Insha’a’s business structures, in addition to being in line with URC’s strategy to increase its returns and profit margins.
The acquisition was in partnership with Qurain Petrochemical Industries Company (QPIC) a sister company of URC, for a total acquired interest of 97.93 per cent and total value of KD13.75 million ($44.9 million) , where QPIC’s share is 58.76 per cent.
UBC chief executive Mohammad Al Wetayan said Insha’a Holding is a local leader in building and construction materials and its acquisition will add significant value to UBC for all of its current and future projects.
UBC and Insha’a have a similar strategic vision and a long history in the Kuwait construction sector that will allow both companies to create greater capabilities and growth, he noted.
According to him, UBC is positioning itself for further expansion in Kuwait’s public and private construction sector.
"Classified as a Grade “A” building and contracting company since 1984, UBC is a pioneer in the construction industry with a long remarkable track record and numerous iconic projects in Kuwait," he added.-TradeArabia News Service