Burgan Bank has signed a share purchase agreement (SPA) to take full ownership of United Gulf Bank (UGB), a wholesale bank headquartered in Bahrain, from United Gulf Holding (UGH) in a deal worth $190m.
Through the transaction, Burgan Bank aims to advance its strategy of diversifying its asset portfolio and focusing on more stable markets, particularly in Kuwait and the wider Gulf Cooperation Council (GCC) region.
UGB operates under a wholesale banking licence issued by the Central Bank of Bahrain (CBB) and includes an Islamic banking window.
The bank also holds a 60% stake in Kamco Investment (Kamco Invest), a Kuwait-based investment firm regulated by the Capital Markets Authority (CMA) and the Central Bank of Kuwait (CBK).
Kamco Invest provides a wide range of investment solutions, including asset management, investment banking, and brokerage services. It has approximately $16bn in assets under management.
The firm also has a presence in key capital markets, including Saudi Arabia, the UAE, and the UK.
The acquisition of UGB is also expected to strengthen Burgan Bank’s offerings by granting its clients access to Kamco Invest’s investment platform.
Founded in 1977, Burgan Bank is a Kuwaiti financial institution with a focus on corporate and financial institution sectors, alongside retail and private banking segments.
The bank operates across the MENAT region through its subsidiaries, collectively known as the Burgan Bank Group.
These include Gulf Bank Algeria (AGB), Tunis International Bank (TIB), and Burgan Bank Turkey, along with a corporate office in the UAE, Burgan Financial Services.
Burgan Bank is a majority-owned subsidiary of Kuwait Projects Company (KIPCO).
Burgan Bank Group CEO Tony Daher said: “The acquisition marks a significant milestone for our Group and is aligned with the Bank’s strategic pillars of diversifying its assets, enhancing its competitiveness and building new income streams.
“This acquisition provides Burgan with an opportunity to tap into key high-growth sectors of Islamic financing and investments, while creating significant cross-selling and up-selling opportunities, in addition to various integrational synergies.”
The acquisition has received all necessary regulatory approvals from authorities in both Kuwait and Bahrain. The final step, the ownership transfer process, is expected to be completed by Q1 2025.
