Kuwait - The Kuwait Stock Exchange surged Thursday on news that the emirate's wealthiest family has agreed to sell its majority stake in Americana food company in an expected multi-billion-dollar deal.
The normally dormant Kuwait bourse was trading up 1.5 percent at 5,196 points after the market announced an initial conditional agreement had been reached to sell the Kharafi family's 69 percent stake in Americana.
Al-Khair National for Stocks and Real Estate, which manages Kharafi family stocks, informed the market that a consortium of Gulf investors is set to acquire the stake.
The Gulf consortium is represented by leading Dubai businessman and chairman of property giant Emaar, Mohamed al-Abbar.
The statement gave no value for the deal but said it is conditional to due diligence investigation and regulatory approvals. It also gave no date for closing the deal.
Established in 1964, Americana, or Kuwait Food Company, is the parent group of more than a dozen major food brands like Kentucky, Costa Cafe and TGI Friday's.
It owns 1 630 outlets and employs 63 000 workers in Middle East and North Africa region. It also has 17 factories in the region and abroad and produces a variety of food products.
Americana has been in the news for several months after Saudi-based food company Savola reportedly offered around $4 billion to acquire the firm. That offer was rejected.