The integration of the two lenders is expected to take between 18 and 24 months.
Sunday 16, June 2019 BY KUDAKWASHE MUZORIWA
Saudi British Bank (SABB) and Alawwal have merged their businesses after receiving regulatory and shareholder approvals, creating the third largest bank by assets in the Kingdom.
The transaction was executed through a share swap, with Alawwal bank shareholders receiving 0.49 SABB shares for each Alawwal bank share.
Additionally, the new shares were issued by way of a capital increase, which increases SABB's paid-up capital by 37 per cent from SAR 15 billion to around SAR 21 billion, the number of the bank's issued shares will also increase from 1,5 billion to 2,1 billion.
SABB stated that the combined bank will cement its position as a top tier Saudi financial institution, with total revenue of SAR 10.9 billion, more than one million retail customers and the second largest corporate bank by assets.
David Dew, the Managing Director of SABB, said, “The increased scale and capacity will allow us to support the growing needs of our diverse customer base, while also providing unrivalled international connectivity for retail, corporate and institutional clients.”
The combined bank has SAR 257 billion of total assets, SAR 168 billion of customer loans and SAR 195 billion of customer deposits.