National Bank of Kuwait (NBK) has agreed to sell its 30% stake in International Bank of Qatar (IBQ) to Qatari investors in a transaction worth $538m.
The sale would generate a profit of $87m m, which would reflect in 2014 financial results, NBK said in a statement.
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National Bank of Kuwait acquired a 20% stake in IBQ in 2004 and raised its shareholding to 30% in 2007 and had been managing the bank.
The sale is subject to customary conditions including regulatory approvals.
Commenting on the deal, NBK chairman Nasser Al Sayer said that this transaction is in line with NBK’s strategy of owning and managing controlling stakes in entities in the MENA region with more focus on GCC markets.
"We have decided to exit this partnership as we saw limited opportunity to increase our 30% ownership in IBQ to a controlling stake. This sale will also strengthen our capital position to pursue our regional expansion strategy and benefit from any opportunity in Qatar or any of the other GCC markets."
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