SABB’s EGM approves merger with Alawwal bank, 37% capital raise

SABB’s EGM approves merger with Alawwal bank, 37% capital raise
The capital increase shall become effective upon the merger becoming effective
ALAWWAL
1040
-0.11% 18.20 -0.02
SABB
1060
0.51% 39.60 0.20

Riyadh – Mubasher: The extraordinary general meeting (EGM) of the Saudi British Bank (SABB) approved the proposed merger of SABB and Alawwal bank through the issuance of 0.48535396 new SABB shares for every share in Alawwal bank subject to the terms and conditions of the merger agreement between both entities.

The board has also approved the increase of the bank’s share capital to SAR 20.54 billion instead of SAR 15 billion, representing a 37% increase of the current capital of SABB, according to a filing to the Saudi Stock Exchange (Tadawul) on Thursday.

The rise in the capital is subject to the terms and conditions of the merger agreement and with effect from the effective date.

Moreover, SABB’s board agreed upon the terms and conditions of the merger agreement entered into between SABB and Alawwal bank on 3 October 2018.

The capital increase shall become effective upon the merger becoming effective as set out in the shareholders circular (effective date).

The eligibility of the company's capital increase subscription will be to the shareholders owning shares in Alawwal bank on the effective date, and who are registered in the Alawwal bank’s share registry at the Depository Center by the end of the second trading period following the effective date.