United Real Estate Company K.S.C.P (URC) announced reaching a preliminary merger agreement with Al Dhiyafa Holding Company (DHC) and United Towers Holding Company (UTHC) through a signed Memorandum of Understanding (MoU), in which URC is the merging entity while both companies become the merged entities.
The merger process will be in accordance with Kuwaiti laws and regulations after obtaining the necessary approvals from the regulatory authorities according to a fair evaluation of the three entities and obtaining fairness opinion by an independent investment advisor, alongside the shareholders’ approval of the entities through their extraordinary general assembly.
Commenting on this announcement, URC Vice Chairman and Group Chief Executive Officer, Mr. Mazen Issam Hawwa said, “URC’s bid to merge with DHC and UTHC enhances its portfolio of income-generating assets, creates an added value, strengthens shareholders‘ base, increases equity through issuance of new shares, and streamlines operational performance in line with the Group’s strategic vision and future goals. The merger also increases the competitive financial landscape and creates new investment opportunities for shareholders of the merged entities through URC’s extensive track record of real estate developments and investments.”
On his part, Al Dhiyafa Holding Company (DHC) Chairman, Sheikh Khalifa Abdullah Al-Jaber Al-Sabah said, “We seize opportunities by integrating with URC to expand its investment’s scope and diversification.”
Meanwhile, United Towers Holding Company (UTHC) Chairman and Chief Executive Officer, Mr. Ahmed Saud Al-Sumait said, “The merger entity will benefit from a well-balanced and diversified portfolio of assets and provides shareholders of the merged entities with liquidity in trading.”
United Real Estate Company K.S.C.P (URC) has extensive experience in real estate development and operations in Kuwait and the MENA region, with consolidated assets of KD 612.2 million (US$ 2 Billion) as of 30 September 2021. Headquartered in Kuwait, URC was founded in 1973 and was listed on the Kuwait Stock Exchange in 1984.
Established in 2005, Al Dhiyafa Holding Company K.S.C.C (DHC) manages several subsidiaries geographically spread across Lebanon and Egypt at a capital value of KD55 million. The Company’s portfolio of assets and businesses includes Safir Bhamdoun Hotel and Raouche View 1090 in Lebanon, Hilton Cairo Heliopolis & Waldorf Astoria Hotel Egypt.
Established in 2006, United Towers Holding Company K.S.C.C (UTHC) has a core business focus on real estate investment and development activities valued at KD45 million. UTHC’s property portfolio includes Al Shaheed Tower, City Tower, and KIPCO Tower, all located in Kuwait’s business district, Sharq, and Marina Plaza in Salmiya.