SABB sells 2% stake in HSBC Saudi Arabia for SAR 36 mln
The Saudi British Bank (SABB) signed on April 18 a binding agreement with HSBC Asia Holdings to sell 1 million shares, or 2 percent, of its stake in HSBC Saudi Arabia for SAR 36 million, the lender said in a bourse statement.
SABB’s stake in HSBC will be 49 percent instead of 51 percent, while HSBC Asia Holdings will be owning a controlling 51 percent.
The total book value of the shares amounts to SAR 20.14 million as of December 2018.
The deal is still subject to meeting contractual conditions, and shareholders and regulatory approvals, SABB said.
The step will allow HSBC Saudi Arabia to further benefit from the international experience of the HSBC Group, it said.
The deal’s financial impact is expected to show on SABB financial results upon transaction finalization.
Also, the deal is expected to include a shareholders’ agreement concerning governance and board composition.
SABB intends to use the proceeds from the sale to support its activities generally, the statement added.