NIG Prospectus - London Stock Exchange

Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:19 pm – mac5 – 3776 Section 07 : 3776 Section 07its management with that of BI Group. Since acquiring these two businesses, NIG has disposedof certain non-core businesses while committing further resources to the development of its corebusinesses.In September 1998, in partnership with a number of Middle Eastern investors, NIG committedUS$19.8 million in equity capital for a 15 per cent. stake in Saudi International PetrochemicalsCompany SJSC (SIPCHEM). This company was established in Saudi Arabia for the purpose ofinvesting in three major petrochemical projects for the production of butandiol, methanol andacetic acid in the Jubail industrial area in Saudi Arabia at a total estimated cost of US$725 million.In 2000, NIG also acquired an 8 per cent. stake in National Industrialisation Company (Tasnee) inSaudi Arabia for KD 3.4 million.In April 2003, NIG changed its name to National Industries Group Holding Company S.A.K. and itsformal status changed to that of a holding company. NIG decided to change its status to that of aholding company since the articles of association of a holding company include more activities andoffer NIG more flexibility.In June 2006, NIG was listed on the Dubai Financial Market (the DFM). It is considering furtherlistings on stock exchanges within the GCC, including the Doha Stock Exchange.As at 31 December 2006, NIG’s consolidated total assets were approximately KD 1,457 million,and its consolidated shareholders’ equity was approximately KD 722 million. NIG’s marketcapitalisation was KD 1,482 million as at 31 December 2006.For the year ended 31 December 2006, consolidated net profit attributable to NIG’s shareholderswas KD 135 million. NIG achieved significant growth in net income during the four-year period from1 January 2003 to 31 December 2006, with income attributable to its shareholders increasingfrom KD 26 million to KD 135 million, corresponding to a compounded annual growth rate of 104per cent.As at 31 December 2006, NIG had approximately 3,622 employees including 1,633 employed byits building materials operations, 1,807 by its specialist engineering operations, 52 by its financialservices company and 45 at its head office.The registered office of NIG is located at Al Jahra Street crossing the Airport Road, Al Shuwaikh,Kuwait. Its commercial registration number with the Ministry of Commerce is 8392. Its telephonenumber is 00965-4849466.NIG BUSINESS ACTIVITIESNIG is a holding company and operates through its shareholdings in a portfolio of fully or partlyowned companies. It segregates its investments in companies into two main categories:(i) investments in Core Operating Businesses; and (ii) other Investments.NIG’s investment in Core Operating Businesses consists of holdings in companies that are inmajority owned and controlled by NIG. NIG undertakes its Core Operating Businesses in sixindustries which are: (i) building materials; (ii) specialist engineering; (iii) petrochemicals;(iv) financial services; (v) utilities; and (vi) oil and gas services.Other Investments in turn consist of Strategic Investments and Financial Investments. StrategicInvestments include long term investments in companies operating in industries in which NIG isactively involved, yet holds a minority stake. Financial Investments are investments where NIG hasno or limited operating involvement and a minority stake.64