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Reuters
Al-Ahly Bank and Samba Financial Group signed a binding merger agreement between them, whereby the National Bank became a merger, with the termination of Samba Financial Group and the transfer of the group’s shares in favor of the National Bank.
The National Bank will issue several new shares, according to which the shareholders of the “Samba” group will receive 0.739 shares in the merged bank “AlAhli”.
Under the agreement, the headquarters of the merged bank “Al-Ahli” will move to the city of Riyadh instead of the city of Jeddah, with the appointment of the chairman of the board of directors of “Samba” as CEO of the merged bank “Al -Ahli “, while the current chairman of the board of directors of bank” Al-Ahli “will be appointed member Managing Director and CEO of the merged banking group” AlAhli “
The two banks agreed to appoint a specialized consulting firm to advise on the name, logo and identity of the merged bank, to be determined later, and the agreement stipulated that the employees will not be laid off on a mandatory basis.
The merger will lead to the formation of a strong regional financial facility, with assets of 837 billion riyals, and the merged bank will become the largest bank in the Kingdom, with a market value of 171 billion riyals and its revenues semi-annual operations of 15 billion riyals, equivalent to 30% of the market share.
While the bank’s net income is expected to reach 7 billion riyals, which represents 38% of market share, “Ahli” bank will become the first in the Middle East in terms of net income, and The common capital base is expected to reach 120 billion riyals.
The merging bank will have a balanced global banking platform across all banking sectors, while its revenues will reach various sectors, including: “41% of operating income resulting from retail banking services, 25% of derived operating income for corporate banking services and 23% for treasury activities, and 6% for international banking services and 5% for financial markets “.
The capital of the National Bank will rise to 44.78 billion riyals instead of 30 billion riyals. Samba shareholders will own 32.6% of Banco Nacional’s capital, while Banco Nacional shareholders will own 67.4% of capital.
Source: “Okaz”
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