The Board of Directors of the United Real Estate Company (URC) recommended to the Extraordinary General Meeting (EGM) to approve the Company’s merger with United Towers Holding Company and Al-Dhiyafa Holding Company, in addition to increasing the Company’s capital, as per a statement issued by Boursa Kuwait yesterday, Wednesday.

The first recommendation was that URC is the merging entity while United Towers Holding Company and Al-Dhiyafa Holding Company become the merged entities, as well as approving the merging project and all related annexes, including the reports issued by the investment advisor and the asset valuator as well as share swap rate, after obtaining the required regulatory approvals. 

The Board of Directors also recommended to the EGM to consider a capital increase of KWD 24.26 million, representing the net asset value of the two merged entities, excluding the shares owned by “URC” in both companies, to move forward with the merging process.

According to the statement, URC’s authorized, issued, and paid-up capital of will become KWD 143.05 million, distributed over 1.43 billion shares, subject to receiving regulatory approvals. 
URC pointed out that this material information bears no impact on its financial position; until the merging process is finalized. 

Last week, the Capital Markets Authority approved the merger agreement, noting that URC shares were valued at 168 fils per share, United Towers Company at 107 fils per share and Al- Dhiyafa at 80 fils per share.