•         Sale of entire stake in Kuwait’s Al Kout Industrial Projects Company
 
Dubai, 11 May 2010 – SHUAA Capital, the region’s leading financial services institution, today confirmed the Kuwait Stock Exchange’s approval of its block trade arrangement to sell its entire 48.69% stake in Al Kout Industrial Projects Company (‘AIP’), to a group of prominent Kuwaiti investors.  The sale will generate in excess of US $ 50 million of liquidity for SHUAA.
 
Listed on the Kuwait Stock Exchange, AIP is a Kuwait-based chemicals business specializing in the production of Chlorine, Hydrochloric Acid, Caustic Soda and other related chemicals for a range of diverse applications from water treatment and food manufacture to oil drilling.  SHUAA Capital bought the stake in AIP in 2006 and has since held the stake as part of its Principal Investments portfolio. 
 
Mr. Sameer Al Ansari, Chief Executive Officer of SHUAA Capital said: “Earlier this year, when we launched our turnaround plan, we made it clear that we wanted to focus the company on our successful fee generating businesses and ensure they are well positioned and resourced to benefit from an ongoing market recovery. Our heritage principal investments, including our stake in Alkout fall outside of our new strategy. We continue to look to sell other non-core assets, and are very encouraged by the fact that market sentiment has improved and deals are being done at sensible valuations.”
 
SHUAA Capital recently reported a return to profitability when it announced its first quarter results last week.  The Company reported a profit of AED 19.5 million for the first quarter, ended 31 March 2010, marking a significant improvement compared to a loss of AED 202.2 million in Q1 of 2009.  All fee generating business units were profitable during the quarter.

 
 
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