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SAIB EGM nods to buy JPMorgan’s stake for SAR 759m

SAIB EGM nods to buy JPMorgan’s stake for SAR 759m
The EGM approved to purchase 56.25 million shares as treasury stocks at a total value of SAR 759.3 million
SAIB
1030.B
-0.70% 17.04 -0.12

Riyadh – Mubasher: The Saudi Investment Bank’s (SAIB) extraordinary general meeting (EGM) has agreed to purchase JPMorgan International Finance Limited’s stake in the bank.

The EGM approved to buy 56.25 million shares, accounting for 7.49% of capital, as treasury stocks at a total value of SAR 759.3 million, or SAR 13.50 per share, SAIB said in a statement to the Saudi Stock Exchange (Tadawul) on Thursday.

The Saudi lender will finance the transaction from its own resources and assets, and does not intend to cut capital as shares will be kept as treasury stocks to be resold to shareholders eventually, the bank indicated.

Shares will be resold with the same mechanism as a rights issue, within 18 months from the transaction’s date and after the bank obtains all the required approvals, SAIB highlighted.

Shareholders have also granted a one-year authorisation of the board of directors to finalise the deal with JPMorgan on one or several stages, it added.

The EGM also assigned SAIB's board of directors to complete the purchase deal with JPMorgan on one or several stages over up to 12 months, according to the statement.

In June, SAIB signed an agreement to buy the entire stake of JPMorgan in the bank as treasury stocks after obtaining all due approvals.