CMA inks deal to auction stake in Kuwait bourse

KUWAIT, Feb 12 (KUNA) -- The Capital Markets Authority (CMA) inked on Monday an agreement with a consultancy group to auction a stake in the capital of the bourse company.
CMA Acting Chairman of Commissioners and Chief Executive Officer Meshaal Al-Osaimi said at a news conference after signing the deal that the tripartite company is its chair, with KAMCO and Oliver Wyman Co. as members, in addition to local and international law offices.
The deal came after the commissioners' board decided to award the tender to a company owned by the Public Investment Authority (PIA), at a 60 percent rate, Oliver Wyman, 30 percent, and Kuwait Fund for Economic Development, 10 percent.
Al-Osaimi said the contract "constitutes a pivotal stage in the process of privatizing Boursa Kuwait," in response to lawmakers' desire to transform the stock market into a share-holding company.
A share holding company, he explains further, is entitled to privatize stocks at a rate no less than six percent and no more than 24 percent (for public authorities).
He added that a 26-44 percent proportion would be floated for registered companies. He also indicated at privatizing 50 percent of the stake for public subscription.
Al-Osaimi added that terms and criterions warranted for qualifying the enlisted companies entitled for auctioning would be set. (end) mke.rk