SABB to vote on capital hike for Alawwal Bank merger on May 15

Saudi British Bank’s shareholders are set to vote on a capital hike to SAR 20.55 million from SAR 15 million in order to complete the merger with Alawwal Bank, during the general assembly meeting that will be held on May 15, 2019.

Shareholders will also vote on the terms of the merger agreement with Alawwal Bank.

Alawwal Bank’s shareholders are also set to vote on the offer presented by The Saudi British Bank (SABB) for the merger of the two banks through the issuance of 0.48535396 new SABB shares for every share in Alawwal which will result in the dissolution of Alawwal Bank, during the general assembly meeting that will be held on May 15, 2019, the bank said in a bourse statement.

Shareholders will also vote on the termination and settlement agreement between the bank and Natwest Markets N.V. and the three successor settlement agreements between the bank, Natwest Markets N.V. and each of Natwest Markets plc and The Royal Bank of Scotland Group plc, Stichting Administratiekantoor Beheer Financiële Instellingen and Banco Santander, S.A.

Executing these agreements is one of the conditions to the completion of the proposed merger, the statement added.

In October 2018, SABB and Alawwal Bank inked a merger agreement to create Saudi Arabia’s third-biggest lender with a market capitalization of about $17.2 billion, Argaam reported earlier.

Both banks expect the deal to be completed within H2 2019.

On Monday, Saudi Arabia's Capital Market Authority (CMA) approved Saudi British Bank’s (SABB) request to increase its capital from SAR 15 billion to SAR 20.55 billion, by issuing 554.8 million ordinary shares in order to merge Alawwal Bank with SABB.