03/05/2009 00:00 AST

Kuwaiti Islamic asset manager Aayan Capital said it would be shut down as part of plans by its parent firm Aayan Leasing and Investment Co to cut costs by restructuring.

Aayan Capital had been in merger talks with two local investment companies late last year, but those talks failed, and Aayan Leasing now planned to liquidate the company, Aayan Capital Managing Director Mansour al-Mubarak said.

"The intention is to dissolve Aayan Capital in a very short while and will combine it with the (parent) company," Mubarak said in an interview on Thursday.

The Islamic investment firm also plans to merge two of its transportation leasing units as it strives to cut costs and restructure, Mubarak said, adding Aayan Leasing could post a loss in the first quarter after revaluing some assets.

"We might get into losses in the first quarter," he said.


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