Kuwait Projects Co. said it expects to complete its acquisition of Kuran Petrochemical Industries Co. this year, after S&P Global Ratings said it would struggle to improve its financial position if the deal fell through.
Iman Al Awadhi, Group Senior Vice President of Corporate Communications and Investor Relations, said: “In parallel with management’s efforts to meet our obligations and maintain our financial position, we are working towards successfully closing the merger with QPIC. continue to do so.” Kuwait Projects.
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“The due diligence process is well underway, the merger is progressing as per the scheduled deadline and we are confident that it will be completed before the end of the year,” he said in a statement.
Kuwait Projects, also known as Kipco, and Kuran Petrochemical signed an agreement in March to assess a possible combination that would create a firm with a combined market value of about $2.7 billion. Kipco is an investment firm with a focus on the Middle East and North Africa.
S&P last week placed Kipco’s credit rating on CreditWatch with negative implications, saying that “in the absence of a successful merger, we do not believe that Kipco will continue to improve its balance sheet, liquidity and high leverage while maintaining financial performance.” will be able to significantly improve its current credit profile.”
The rating agency said the merger with Kuran Petrochemical is “a highly transformative event and will potentially limit further erosion in Kipco’s credit profile in case of a successful completion.”
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