Kuwait-based Warba Bank has said that its proposed acquisition of Kuwait & Middle East Financial Investment Company (KMEFIC) has not been approved by the country’s central bank.

KMEFIC is an asset management and financial services company listed on the Kuwaiti stock exchange.

In February this year, Warba Bank announced that it had signed a share purchase agreement with Ahli United Bank (AUB) and its subsidiary to purchase their collective shareholding of 75.72 percent stake in KMEFIC, subject to securing all regulatory approvals. The aggregate purchase price announced was 10.2 million Kuwaiti dinars ($33.5 million). (Read more here).

According to a statement filed by Warba Bank on Boursa Kuwait on Wednesday, the central bank’s disapproval of the acquisition will not have a significant effect on the financial position of the company.

In 2018, Warba Bank’s profits jumped by 71 percent year-on-year to 12.74 million Kuwaiti dinars, in comparison to 7.45 million dinars in 2017.

The purchase agreement came at a time when mergers and acquisitions in the Gulf’s financial sector are rising as lenders attempt to improve their financial standing through consolidation. (Read more here).

(Writing by Nada Al Rifai; Editing by Michael Fahy)

(nada.rifai@refinitiv.com)

© ZAWYA 2019