Burgan Bank, a subsidiary of Kuwait Projects Company (KIPCO), has completed the purchase of Tunis International Bank from United Gulf Bank (UGB), the investment banking arm of KIPCO , which is regulated by the Central Bank of Bahrain.
The deal – which is part of Burgan’s regional expansion strategy – first announced in 2008 – involved the purchase of Jordan Kuwait Bank, Gulf Bank Algeria, Bank of Baghdad and Tunis International Bank from UGB for a total of $725m.
Majed Al Ajeel, chairman of Burgan Bank, said: “We are delighted to have completed the first stage of our regional expansion strategy by the acquisition of Tunis International Bank. This deal further extends our presence in North Africa and gives us a unique opportunity to develop our banking activity in Tunisia. The deal also marks the completion of the first stage in our aggressive regional expansion strategy and we are delighted with the progress our regional banking network is making.”
David Rhodes, CEO of UGB, said: “We are delighted that we have now completed the agreement with Burgan Bank for the sale of our regional operations. The deal will allow us to move forwards with our new business plan and is a catalyst for our development as one of the region’s leading investment banks and asset management companies.”