RIYADH: The Capital Market Authority (CMA) of Saudi Arabia has announced the issuance of its resolution approving The Saudi British Bank request to increase its capital from SAR 15 billion to SAR 20.547 billion by issuing 554.794 million ordinary shares to merge Alawwal Bank into The Saudi British Bank and transferring all of Alawwal’s Bank assets and liabilities to the Saudi British Bank through a securities exchange offer.[the_ad id=”31605″]The Saudi British Bank capital increase shareholder circular will be published within sufficient time before the Extraordinary General Assembly Meeting. The Capital Market Authority (CMA) noted the shareholder circular must include all relevant information that the shareholders need to know before making an informed decision when voting on the capital increase for the purpose described, including the increase in capital and risk factors
The CMA resolution included the approval of the proposed offer timetable, as well as the approval of the publication of the offer document by The Saudi British Bank to Alawwal Bank shareholders to merge Alawwal Bank into The Saudi British Bank through a securities exchange offer
If the shareholders of The Saudi British Bank approved the capital increase, and the shareholders of Alawwal Bank accepted the offer in their Extraordinary General Assembly Meetings, the new shares will be issued to Alawwal Bank shareholders who are registered in the shareholders registry at the Securities Depository Center Company and the shares of Alawwal Bank will be delisted from the Saudi Stock Exchange after the merger decision becomes effective.
A voting decision without reading the shareholders circular and the offer document carefully reviewing its content may involve high risks. Therefore, the shareholder should carefully read the shareholders circular and the offer document to be able to reach a proper voting decision. If the shareholders circular and offer document prove difficult to understand, it is recommended to consult with an authorized financial advisor.
The CMA’s approval of the application merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.