Al-Ahly Bank and Samba Financial Group signed a binding merger agreement between them, so that the National Bank became a merger, with the termination of Samba Financial Group and the transfer of the group’s shares in favor of the National Bank.
The National Bank will issue several new shares, according to which the shareholders of the “Samba” group will get 0.739 shares in the merging bank “AlAhli”.
According to the agreement, the headquarters of the merging bank “Al-Ahli” will be transferred to the city of Riyadh instead of the city of Jeddah, with the appointment of the Chairman of the Board of Directors of “Samba” as the CEO of the merging bank “Al-Ahli”, while the current Chairman of the Board of Directors of the “National Bank”, Saeed Al-Ghamdi, will be appointed as a member. Managing Director and CEO of the merging bank group “AlAhli”.
The two banks agreed to appoint a specialized consulting company to provide advice regarding the name, logo and identity of the merging bank, which will be determined at a later time, and the agreement included that the employees will not be discharged compulsorily.
The merger will lead to the formation of a strong regional financial facility, with assets of 837 billion riyals, and the merging bank will become the largest bank in the Kingdom, with a market value of 171 billion riyals, and its semi-annual operating income of 15 billion riyals, equivalent to 30% of the market share.
While the net income of the bank is expected to reach 7 billion riyals, representing 38% of the market share, and the “Ahli” bank will become the first in the Middle East in terms of net income, and the pooled equity base is expected to reach 120 billion riyals.
The merging bank will have a balanced global banking platform in all banking sectors, while its income will reach from several sectors, including: “41% of operational income resulting from retail banking services, 25% of operating income resulting from corporate banking services, and 23% from treasury activities, And 6% for international banking services, and 5% for financial markets. ”
The capital of the National Bank will be raised to 44.78 billion riyals instead of 30 billion riyals. Samba shareholders will own 32.6% of the capital of the National Bank, while the shareholders of the National Bank will own 67.4% of the capital.
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