KAMCO launches KD 50 million private placement of shares in new North Africa Holding Company

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KAMCO has announced the launch of the private placement of 500 million new shares in North Africa Holding Company KSC (Closed) (under incorporation). The Company will be incorporated according to Kuwaiti law with a paid-up capital of KD 50 million (equivalent to US$ 170 million).

North Africa Holding Company will primarily undertake investment opportunities in the North Africa region.  Initially targeting five countries - Tunisia, Morocco, Algeria, Egypt, and Libya – the company will adopt a diversified approach, investing as a private equity partner in start-up companies as well as investing in listed securities.

KAMCO chairman Masaud M.J. Hayat said: “KAMCO is delighted to present this opportunity to our clients and select investors. We believe this private placement offers excellent potential for future medium term growth in earnings and value, supported by a clear exit strategy of eventual listing on the Kuwait Stock Exchange.

“We forecast that key North African economic indicators will remain strong and our view is shared by the Kuwait Projects Company (KIPCO) whom we expect to subscribe to a substantial share of the North Africa Holding Company’s capital and fully support the company’s activities.”

Research studies prepared by KAMCO reveal that the increase in oil prices and major developments in the regional energy sector have lead to major structural improvements and high growth rates in the economies of North Africa.

KAMCO also cites the move towards privatizing state owned assets and trade liberalization through membership of the WTO and other free trade organisations as major drivers of economic growth in North Africa.

KIPCO is one of the leading conglomerates in the Middle East & North Africa with a strong track record of successful investment in the North Africa region. In addition to a strong network of contacts and business associates in North Africa, KIPCO has substantial equity stakes in several businesses including Tunis International Bank, Algeria Gulf Bank, Orascom Telecom Tunisie (Tunisiana), Gulf Egypt for Hotels & Tourism, and Wataniya Telecom Algeria (Nedjma).

KAMCO, a subsidiary of KIPCO’s investment banking subsidiary United Gulf Bank (UGB), has assets of almost US$ 6.0 billion under management or control, and more than 120 employees throughout its operations. It has arranged successful private placement and KSE listing of five companies during the last two years.

The private placement will be offered by KAMCO to invited investors and will be open for subscription until 29 January 2006.