United Real Estate Obtains CMA Approval to Merge with Al Dhiyafa Holding Company and United Towers Holding Company

• Sheikha Bibi Al-Sabah: The transaction will create a unified entity that achieves synergy between the three companies in order to expand and diversify investment and assure growth.
• Mr. Mazen Hawwa: The merger enhances the Group's operational performance, which goes in line with its strategic vision and increases its financial competitiveness.

United Real Estate Company K.S.C.P (URC), a leading real estate developer and investor in Kuwait and the MENA region, announced that it has obtained the approval of the Capital Markets Authority (CMA) to merge by amalgamation with Al Dhiyafa Holding Company (DHC) and United Towers Holding Company (UTHC).

The merger is a non-cash transaction, and the share swap ratio has been set at 0.64 URC share for every UTHC share, and 0.58 URC share for every DHC share.

URC’s Board of Directors had approved earlier last month the asset valuation report and the independent investment advisor’s fairness opinion report related to the assets of all three companies. Accordingly, the reports were submitted to the CMA after DHC and UTHC’s Board of Directors approvals.

Following the completion of all regulatory procedures, URC will call its esteemed shareholders for an Extraordinary General Assembly meeting to obtain their approval, which will be done as well by the two merged companies DHC and UTHC.

Commenting on this announcement, URC’s Chairperson, Sheikha Bibi Nasser Sabah Al-Ahmed Al-Sabah, expressed her contentment with the completion of this significant step, which will create an added value to the shareholders of the three companies -once all the regulatory procedures are completed-. Sheikha Bibi Al-Sabah also highlighted that the unified entity will benefit from a well-balanced and diversified portfolio of assets, along with providing liquidity to the shareholders of the merged companies, in addition to the possibility of achieving growth in the value of their investments in the future.

From his side, Mr. Mazen Issam Hawwa, URC Vice Chairman and Group Chief Executive Officer, said: “The merger process will enhance the Group’s operational performance which goes in line with its strategic vision and future goals, in addition to increasing equity by issuing new shares.” Lastly, Mr. Hawwa extended his gratitude to the Capital Markets Authority (CMA) and the regulatory authorities for ensuring that all aspects of the transaction are aligned with the best interests of all parties.