Global-AAIB hold talks to sell investment in Egypt

Global Investment House said it is in initial talks with Arab African International Bank (AAIB), to sell a stake in an investment in Egypt, but not as part of its debt settlement plan.

Global, one of the country's biggest investment firms, reached a deal with creditors in December to reschedule $1.7 billion (Dh6.2bn) in debt, and entered into new three-year facilities with each of its 53 lending banks.

"Global's exit from Real Estate Finance House Co for the favour of Arab African International Bank as part of debt settlement is incorrect news... negotiations are still in their primary stages," Global said in a statement on the Kuwaiti bourse website yesterday.

On Monday, Kuwaiti daily newspaper Al Watan said Global has entered serious negotiations to sell its investment in Real Estate Finance House Co to AAIB, as part of a strategic plan to settle its debt. Global reached a deal with creditors in December to reschedule $1.7bn in debt, and entered into new three-year facilities with each of its 53 lending banks.

The investment firm is expected to have its shareholders vote on January 12 on a restructuring deal to transfer its main investments and real estate assets to two new units.

The trouble at Global and other Kuwaiti investment firms led the government of the world's fourth-largest oil exporter to approve a rescue package worth KD1.5bn ($5.23bn) earlier in 2009.

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