Kuwait Finance House: Bahrain’s Ahli United Bank Merger is Underway

Kuwait Finance House. (KUNA)
Kuwait Finance House. (KUNA)
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Kuwait Finance House: Bahrain’s Ahli United Bank Merger is Underway

Kuwait Finance House. (KUNA)
Kuwait Finance House. (KUNA)

Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq said KFH’s purchase of Bahrain’s Ahli United Bank (AUB) is expected to boost consolidated profit for the group.

Al-Marzouq also noted that the procedures for KFH’s acquisition of AUB are moving forward as all relevant studies conducted by Goldman Sachs, JPMorgan, Bank of America Merrill Lynch and Alshall Consulting Co. have confirmed the positive financial viability of KFH for this acquisition.

The expected increase in KFH’s consolidated profit is more than 90 percent compared to 2018 profits, as the merger will create the largest banking entity in Kuwait and the sixth largest bank in the Gulf region.

KFH, after the merger, is set to be one of the largest Islamic banks globally and regionally with assets of more than $94 billion and equities exceeding of $10 billion.

Al-Marzouq added that the merger will increasing the Bank’s lending capacity by 61 percent after acquisition, which will enhance its ability to finance infrastructure and large projects locally and regionally through reducing costs, and allowing it to tap new markets such as Egypt and the United Kingdom.

The banks, which have been undergoing merger talks since mid-2018, when they agreed on a preliminary exchange ratio of one KFH share for every 2.326 AUB shares. They have not revealed the share prices for the exchange ratio.

Al-Marzouq said shares would be issued equivalent to about 53.96 percent of KFH’s current shares. In addition, it will improve the quality of assets and the distribution risks, in particular the geographical distribution.

“In terms of employment, the ‘new entity’ will be able to create additional large employment opportunities for citizens, especially young graduates, with the number who enter the market reaching thousands every year. Thus, the ‘merged bank’ will be able to play a more vital role in this range”, Al-Marzouq explained.



Russia’s First Ice-Class LNG Carrier Enters Sea Trials, Data Shows

A concrete gravity-based structure (GBS) of Arctic LNG 2 joint venture is seen under construction in a dry dock of the LNG Construction center near the settlement of Belokamenka, Murmansk region, Russia July 26, 2022. (Reuters)
A concrete gravity-based structure (GBS) of Arctic LNG 2 joint venture is seen under construction in a dry dock of the LNG Construction center near the settlement of Belokamenka, Murmansk region, Russia July 26, 2022. (Reuters)
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Russia’s First Ice-Class LNG Carrier Enters Sea Trials, Data Shows

A concrete gravity-based structure (GBS) of Arctic LNG 2 joint venture is seen under construction in a dry dock of the LNG Construction center near the settlement of Belokamenka, Murmansk region, Russia July 26, 2022. (Reuters)
A concrete gravity-based structure (GBS) of Arctic LNG 2 joint venture is seen under construction in a dry dock of the LNG Construction center near the settlement of Belokamenka, Murmansk region, Russia July 26, 2022. (Reuters)

The first Russian-built ice-class liquefied natural gas (LNG) carrier has entered sea trials, LSEG data showed on Friday, as part of Russia's efforts to raise global LNG market share despite US sanctions.

The tanker, named Alexey Kosygin after a Soviet statesman, was built at the Zvezda shipyard and is due to join the fleet of vessels for Russia's new Arctic LNG 2 plant, which has been delayed because of the US sanctions over the conflict in Ukraine.

The US Treasury has also placed sanctions on the new vessel, which Russia's leading tanker group Sovcomflot ordered to be built at Zvezda, Russia's most advanced shipbuilding yard. LSEG ship-tracking data shows it is anchored near the Pacific port of Vladivostok.

Sovcomflot has not replied to a request for comment.

Novatek, which owns 60% of Arctic LNG 2, has said 15 Arc7 ice-class tankers that are able to cut through two meter (6.5 ft) thick ice to transport LNG from Arctic projects, will be built at Zvezda shipyard.

According to a source familiar with the matter, Novatek shut down commercial operations at the first and only operational train of its Arctic LNG 2 project in October with no plans to restart it during winter.

Ice-class tankers usually have double hulls - strengthened structures to withstand the pressure of ice - and reinforced propellers.

So far, only three suitable gas tankers have been built for Arctic LNG 2, according to public information: the Alexey Kosygin, Pyotr Stolypin and Sergei Witte vessels.

Six more Arc7 tankers were due to be built by Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, including three for Sovcomflot and three for Japan's Mitsui O.S.K. Lines.

However, the three tankers ordered by Sovcomflot were cancelled due to the sanctions against Russia, Hanwha said last year in regulatory filings.