Agility is currently suspended from trading at the Kuwait Stock Exchange. The reason? A U.S. grand jury indicted Agility with charges of fraud and conspiracy alleging that it overcharged the U.S. Army on $8.5 billion worth of contracts to provide food to soldiers in Iraq, Kuwait and Jordan. This U.S. indictment will prevent Agility from getting contract awards until the issue is resolved but will not impair existing contracts with the U.S. government.
Agility has been one of the very few stars in the Kuwait SE this year. This new comes as a severe blow to an already distressed stock market. Noting that Agility heavily depends on US contracts (75% of the group’s EBITDA) this is a major major major calamity. Agility is similar to Zain in that it is an operational company with numerous companies dependent on its success. Most of these companies are trading limit down as I speak. For example, NREC (National Real Estate Co.) owns 22.44% of Agility and is currently limit down. God bless the Kuwait SE.
Below is an the statement issues by Agility:.........
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