Kuwait: URC acquires 39% stake in Insha’a Holdingby Jochebed Menon on Mar 16, 2017
United Real Estate Company (URC) has announced a 39.17% acquisition in building materials company, Insha’a Holding.
The acquisition was made by URC's building arm, United Building Company (UBC), which is a wholly owned subsidiary of the Kuwait-based property development firm.
The move forms part of a partnership between UBC and Qurain Petrochemical Industries Company (QPIC), a sister concern of URC. In total, the stakeholders have acquired an interest of 97.93% in Insha'a, in a deal valued at $45m (KWD13.75m).
URC’s chairman, Tariq AbdulSalam, said that the agreement represents the company’s first acquisition in the building and construction sector.
He added that it represents a step towards the implementation of URC’s new strategy, which focusses on creating a balance in the sources of income and structuring a diversified portfolio of assets and various businesses that achieve a steady and sound rate of return.
Ahmad Kasem, URC’s deputy chief executive officer, said that the acquisition is aligned with the company’s strategic direction to build and support its subsidiaries, in addition to enhancing their respective operating profits and diversifying sources.
Kasem also stated that the acquisition will lead to further operational efficiency for UBC, as Insha’a has outstanding activities in readymix concrete, building materials, construction chemicals, and manufacturing. These activities, he argued, will add greater value and complement the construction and engineering expertise of the company.
Mohammad Al Wetayan, chief executive officer of UBC, described Insha’a as a local leader in building and construction materials, which will add significant value to UBC for all of its current and future projects.
Al Wetayan also said that UBC is positioning itself for further expansion in Kuwait’s public and private construction sector.