Kuwait City, Kuwait — Burgan Bank has announced the sale of a 52 percent stake in its Turkish subsidiary, Burgan Bank Turkey (BBT), to Rawabi Holding Company, a subsidiary of Kuwait Projects Company (Holding) KIPCO.
The announcement, disclosed on Sunday via the Boursa Kuwait website, underscores Burgan Bank’s strategic decision to bolster its financial position amid dynamic market conditions.
While the sale represents a majority ownership transfer, Burgan Bank will retain operational control over BBT. This nuanced approach allows the bank to uphold influence over BBT’s strategic direction while consolidating its financial statements.
The move is strategically poised to fortify the bank’s capital structure and shield against the impact of fluctuating Turkish lira exchange rates, demonstrating foresight in managing currency volatility, the bank said.
This transaction has garnered approvals from pivotal regulatory bodies, including the Central Bank of Kuwait (CBK) and Turkey’s Banking Regulation and Supervision Agency (BRSA). With these regulatory green lights, the deal is on track for completion in the coming weeks, marking a pivotal milestone in Burgan Bank’s expansion and consolidation strategy.
Established in 1975, Burgan Bank has become synonymous with regional banking prowess. Since its listing on Boursa Kuwait in 1984, the bank has amassed a substantial capital base of KD 400 million (approximately $1.2 billion).