KAMCO Investment Company and Global Investment House (Global) announced yesterday, Monday, the signing of a memorandum of understanding as a first step to start the merger talks between the two companies, which has been talked about throughout the past period.

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Signing the agreement between the two companies means waiting for the official approvals expected to be issued regarding the merger from all the relevant regulatory authorities in the State of Kuwait.

Under the terms of the understanding agreement, KAMCO is the merging company and Global is the combined company.

The merger aims to create a leading entity in the non-banking financial services sector in the Gulf and MENA region with greater operational capabilities and added value for the benefit of customers, shareholders and human cadres.

The merger between the two companies is the largest of its kind that the private investment sector will witness in Kuwait, to enable the new entity to become a leading center in providing non-bank financial services regionally.

The joint entity will also reinforce the current position as the largest asset management and investment banking services company in Kuwait, with the size of managed assets totaling more than $ 13 billion managed through funds, investment portfolios and customer accounts.

In addition to the track record in the investment banking sector with a total business portfolio of $ 21 billion in equity, debt, mergers and acquisitions and real estate sectors.

The merger move is a natural development for KAMCO to acquire a 70% majority stake in Global from NCHH Ventures last September.

In the wake of the acquisition, the two sides participated in the implementation of an intensive process to achieve business complementarity, which includes taking advantage of customer and shareholder responses and work teams.

Each agency appointed an independent asset evaluator accredited by the Kuwait Financial Market Authority to reach the fair value of the assets.

After receiving the evaluation reports, KAMCO and Global appointed PROTIVI as an independent investment advisor and Al Hussam Law Firm as a legal advisor. The investment advisor submitted his recommendations to the respective entities' board for approval.

The board of directors of the two companies approved the report of the independent investment advisor and what he ...