SICO acquires 72.7% stake in Saudi investment bank for $14.4 mln

Bahrain-based investment bank, SICO BSC, completed the transaction to acquire a majority stake of 72.7% in the Saudi-based Muscat Capital, a wholly-owned subsidiary of Bank Muscat, after obtaining all relevant approvals.

The acquisition took place by way of a share swap, valued at BHD 5.5 million ($14.4 million), with 38.56 million of SICO’s treasury shares swapped for a majority stake amounting to 4.36 million shares out of Muscat Capital’s 6 million outstanding shares.

As a result of the transaction, SICO owns 72.7% of Muscat Capital while Bank Muscat owns a 9% stake in SICO.

“This acquisition provides SICO with a direct presence in the region’s largest capital market, Saudi Arabia, which is a major milestone in cementing position as a leading regional investment bank,” Shaikh Abdulla bin Khalifa Al Khalifa, SICO’s chairman of the board, said.

Muscat Capital will be rebranded as SICO Capital after obtaining the required approvals.

“SICO looks forward to further enhancing the entity’s established platform in the Kingdom by exploring new opportunities in Oman and the wider region with its new shareholder, Bank Muscat,” SICO CEO Najla Al-Shirawi said.

Abdulaziz Alajlan & Partners acted as legal advisors, in association with Baker & McKenzie Ltd., who advised SICO on the legal aspects of the transaction.