First Takaful Insurance (FTI) has
completed all procedures to sell its 35% stake in Turkey’s Neova Sigorta
Insurance Company, a sister company, for around KWD 12.14 million as per the
exchange rate on the sale date.
The Kuwaiti insurer logged a loss
worth KWD 4.7 million approximately at the exchange rate on the sale date,
representing changes in exchange rate previously registered in the company’s
budget in the shareholders’ rights at KWD 4.9 million, according to a stock
exchange filing on Sunday.
Cash liquidity rate has been
increased by the same selling value, KWD 12.14 million, whereas the investment
in the affiliate company was down by KWD 11.9 million.
Moreover, the company noted that 5%
of the transaction’s value is suspended upon completion of other procedures in
Turkey as well as other expenses.
The deal’s financial impact will
reflect on the financial statements for the second quarter (Q2) of 2020.
On 11 February, First Takaful
expected the proceeds from the said sale to range from KWD 11.5 million to KWD
On 6 February, the insurance firm
announced the signing of a preliminary agreement to sell its 35% stake in Neova
It is worth mentioning that during
the first nine months of 2019, First Takaful’s profit grew to KWD 826,240,
compared with KWD 809,040 in the same period of the year before.