SABB-Alawwal Bank merger goes into effect

Saudi British Bank (SABB) and Alawwal Bank have said their merger resolution will come into effect on Sunday, June 16.

This comes after the the expiration of the creditor objection period received by Alawwal Bank.

Alawwal Bank will no longer exist as a separate legal entity, as all its assets and liabilities will be transferred to SABB, both lenders said in separate statements to Tadawul.

Alawwal’s Tadawul-listed shares will be cancelled and SABB will hike its paid-up capital to SAR 20.55 billion through issuing 554.79 million ordinary shares in SABB at a nominal value of SAR 10 each to Alawwal shareholders.

Alawwal Bank shareholders, who are registered in the bank’s share registry at Edaa by the end of the second trading period, will be eligible to receive 0.48535396 SABB shares for every share held in Alawwal Bank.

The delisting of Alawwal Bank, as well as the listing and deposit of the consideration shares in eligible shareholders' accounts will be completed no later than the sixth trading period following this announcement.

Required procedures for amending SABB’s commercial registration certificate and SAGIA license, as well as the cancellation of Alawwal Bank’s commercial registration and license will be finalized within the timeframe set out in the key dates and shareholder circular, SABB added.