Aayan says no final decision on unit asset merger

05/05/2009 00:00 AST

Kuwaiti investment firm Aayan Leasing and Investment Co said on Monday it wants to merge its asset management unit with the parent firm but had not taken a final decision yet.

The statement comes after Aayan Capital managing director Mansour Al?Mubarak told Reuters on Thursday asset manager Aayan Capital would be shut down as a stand?alone entity and combined with the parent company as part of a revamp. On Monday, the firm said merging Aayan Capital with its parent company Aayan Leasing was part of its plans to restructure and cut costs but still needs the boards approval, according to a statement on the Kuwait bourse website.

"Part of the strategy (restructuring and cutting costs) is merging Aayan capital, which is a subsidiary and 100 percent owned by Aayan Leasing and Investment, and merging its assets to return under the umbrella of the (parent company)," the statement said.

Mubarak also had told Reuters the Islamic investment firm plans to merge two of its transportation leasing units as it strives to cut costs and restructure, declining to name the companies.

The merging of Aayan Capital with its parent company will not have an effect on Aayan Capital Saudi, which has an independent management team and shareholders, its chief executive told Reuters on Monday in an emailed statement.

"Aayan Leasing and Investment Companys proposed restructuring and strengthen the balance sheet of its Kuwaiti subsidiary, Aayan Capital will not have an effect on the operations of Aayan Capital Saudi as both entities are regulated by two separate regulators and have totally independent management teams," Hani Baothman said in the statement.

Among Aayan Leasings subsidiaries are Aayan Real Estate Co, Abyaar Real Estate Development Co and Mubarrad Transport Co.

Reuters