Riyadh – Mubasher: Credit Agricole, France’s third-largest bank by market value, is considering selling 31% of its share in Banque Saudi Fransi (BSF), Bloomberg reported on Wednesday, citing informed sources.
The stake sale will likely amount to $2.4 billion (SAR 9 billion), the source told Bloomberg on condition of anonymity, noting that the French bank was examining the sale with its advisors and looking for buyers.
The deal may attract local and regional lenders who are interested in entering the Saudi market, another source said.
In 2016, Credit Agricole CEO Philippe Brassac sold more than $19.6 billion in stocks to boost the bank’s capital. The French bank is currently moving towards a cost-cutting strategy and refocusing on primary and home markets for growth.
A number of banks sold stakes in banks across the Middle East last year, including Royal Bank of Scotland and Credit Suisse who sold a combined 40% stake in Saudi Arabian Al Awwal Bank.
BSF has a market capitalisation of SAR 29 billion ($7.7 billion), making it the fifth largest bank in the Kingdom, according to data compiled by Bloomberg.
BSF’s stock gained 0.21% to SAR 24.15 by 11:54am Saudi time, although it has seen a 7.2% drop since the start of the year.
Also in 2016, UK-based Barclay’s decided to sell its Egyptian unit to Morocco’s Attijariwafa Bank.
BSF last reported a sharp drop in its profits for the fourth quarter of 2016 by 60.6% to SAR 374 million ($99.73 million) from SAR 950 million for Q4-15.
