RIYADH: The Saudi British Bank (SABB) has announced a binding agreement with HSBC Asia Holdings BV. In order to sell about one million shares of its shares in HSBC of Saudi Arabia, representing 2% of the capital.
The bank said in a statement released yesterday by Tadawul that the deal was worth 36 million and that its stake in the company would fall to 49% at the time of closure while HSBC Asia Holdings BV's stake would rise. In. To 51%.
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The approximate total book value of the shares is SAR 20.14 million as of December 31, 2018.
He also noted that the conclusion of the transaction is subject to a number of contractual conditions, which include obtaining shareholder approval and approving relevant regulators, including the approval of the Authority.
"The agreement will enable HSBC Saudi Arabia to leverage its expertise in HSBC's international expertise, and the agreement should not have a significant impact on SABB's daily business."
The bank expects the transaction to result in profits in its financial statements for the period of completion of the transaction, and the value of those profits will be about R14 million, according to SABB's financial position as of March 31, 2019.
He said he planned to use the resources of the agreement to boost his overall activities.
Upon completion of the transaction, SABB Bank and HSBC Asia Holdings BV Em. To enter into a modified Partner Agreement with respect to Saudi Arabia's HSBC property.
The main changes to the Partner Agreement will include changing the governance and management issues of HSBC Saudi Arabia (including the Board of Directors) and the ownership indexes as a result of the transaction.
Amendments to the Partner Agreement will reduce the rights of SABB and the control over the management and governance of HSBC of Saudi Arabia.
It should be noted that the transaction involves the presence of related parties, such as HSBC Asia Holdings BV. In. It is owned by the HSBC Group, a major shareholder of SABB Bank and has representatives on its board of directors.
The transaction will be presented to SABB shareholders for approval, in accordance with the requirements of Article 71 of the Companies Act.
HSBC Saudi Arabia is licensed by the Capital Markets Authority (CMA) to conduct securities business.
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