Riyadh – Mubasher: Saudi British Bank’s (SABB) subsidiary HSBC Saudi Arabia entered into a SAR 766.49 million sale and purchase agreement with Alawwal Invest Company, in which SABB owns 100% stake.

Alawwal will buy the business lines of asset management, retail margin lending, and retail brokerage, according to a bourse disclosure on Tuesday.

The whole transaction value will be funded by SABB through shareholder loan and/or equity injection into Alawwal.

The value of the transaction is however subject to adjustments as provided in the agreement, while the completion of the deal is subject to the approvals obtained by HSBC Saudi Arabia and Alawwal.

HSBC Saudi Arabia will become “a smaller, less complex business, and simpler to manage,” following the transaction, SABB said. Meanwhile, Alawwal will be able to solely focus on asset management and servicing retail clients across margin lending and brokerage solutions.

SABB noted that this deal is not expected to have an impact on its operations.

It is worth noting that the listed bank recently completed a merger transaction with Alawwal Bank to combine all products and services provided to customers.