Merge, acquire but pay heed

SUPPLEMENT - MIDDLE EAST - September 01, 2008

As a general rule, all trades in or transfers of title to shares of a Kuwaiti joint stock company (KSC) listed on the Kuwait Stock Exchange (KSE) must occur on the trading floor of the KSE in accordance with the applicable trading rules. There are specific prohibitions against the trading or transfer of shares listed on the KSE at the account level (between clients of a bank or investment company holding shares for the benefit of its clients, for instance) based on KSE Committee decisions and Central Bank of Kuwait (CBK) instructions to banks and investment companies that manage accounts for clients. This ensures that no off-market trades are conducted through the execution of intra-account transfers where shares are held on behalf of various parties by banks or investment companies.

In order to acquire shares in such KSCs, a buyer is required to submit an order to purchase the shares...




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