Monday, February 16, 2009

BVI-registered RAK Real Estate Ltd. to acquire Kuwait-based business

RAK Real Estate Ltd., a company registered in the British Virgin Islands and having office in Dubai, UAE, has announced that it has entered into a conditional agreement for the acquisition of the entire beneficial interest in RAFCO business, which is part of Rafco International Real Estate Company K.S.C.C., of Kuwait City, Kuwait. The total amount payable for this acquisition is US$927,129,210. This consideration will be satisfied by the issue of new shares at a price of US$5.00 each, and totaling amount of 185,425,842 shares.

In addition, a Kuwait based institution has conditionally agreed upon admission to acquire from the principal shareholder, Rafed A.M. Al Khorafi, a total amount of 18,357,158 shares representing approximately 9.9% of the Enlarged Share Capital, at a price per share of $5.00. Total amount of this transaction will to make $91,785,790.00.

Speaking on behalf of the board of directors, the chairman Ahmed Al Omani said that the proposed acquisition represents an important opportunity for the company to strengthen its growth prospects and accordingly enhance shareholder value.

The British Virgin Islands-based RAK Real Estate Ltd. floated on PLUS as an investing company in August 2008, and consists primarily of Kuwaiti shareholders.