Title: Announcement regarding issuance of Disciplinary Board Resolution No. (80/2024 Disciplinary Board) (90/2024 Authority) and imposition of a fine against: The National Industries Group Holding Company for violating the rules of Disclosure and Transparency

Announcement regarding issuance of Disciplinary Board Resolution No. (80/2024 Disciplinary Board) (90/2024 Authority) and imposition of a fine against: The National Industries Group Holding Company for violating the rules of Disclosure and Transparency

For the following reason:
Violation of the provision of Articles (4-1-1) Items 14,22 of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments. It was proven the Company failed to comply with the disclosure at Boursa Kuwait Securities Exchange the following material information:

1. An associate to the parent Company acquired an additional 20% of a company's shares, resulting in the conversion from an associate to a subsidiary company. Its financial statements were merged with those of the parent Company for the ending year of 31/12/2023, without disclosing this to the Boursa Kuwait Securities Exchange.

2. A partner of the associate company settled financial obligations, enabling it to transfer approximately 50 million shares from a bank, this resulted in reversing a financial obligation of KWD 8,584,000 recorded in previous years.

3. A lawsuit filed by the Public Authority for Industry against one of the associate companies, demanding the eviction of uncontracted land, with a financial claim amounting to KWD 16,185,000 for the use of the space since 1/4/2007, the Company did not disclose this lawsuit.

The Resolution included the infliction of the following penalty: -
“Levying a fine against : The National Industries Group Holding Company in an amount of KWD 2,000 (two thousand Dinars) for the attributed violation”.

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these rules in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.