Riyadh – Mubasher: The Saudi British Bank (SABB) on Monday confirmed the continuation of its merger with Alawwal bank over the coming period.
The two lenders are working on completing tie-up procedures, including regulatory approvals, SABB, an affiliate of HSBC Holdings, said in a statement to the Saudi Stock Exchange (Tadawul).
SABB further indicated that it has received the Saudi Arabian Monetary Authority’s (SAMA) approval for the deal.
After obtaining the regulatory approvals, the two banks will hold extraordinary general meetings to vote on the transaction.
SABB expected that the deal will be implemented in the first half of 2019.
“SABB’s financial adviser (Goldman Sachs Saudi Arabia) does not need to confirm that SABB has sufficient resources to satisfy the completion of the transaction given that the consideration payable by SABB for the Transaction does not include cash consideration,” the statement added.
In October last year, the two Tadawul-listed lenders inked a binding merger contract.
In January, Alawwal’s managing director Soren Nikolajsen told Arabian Business that the two lenders would complete consolidation in the first half of 2019.
SABB last reported a 71.3% year-on-year increase in net profits during the fourth quarter of 2018, registering SAR 1.21 billion, from SAR 707 million.
Alawwal Bank posted a 15.42% year-on-year profit decline for the full fiscal year of 2018, logging SAR 1.13 billion, compared to SAR 1.33 billion during 2017.
By 10:37 am Saudi time, SABB’s stock shed 0.14% to SAR 35.50, while Alawwal Bank’s stock inched down 0.12%, reaching SAR 16.36.
