You are here: Home » International » News » Others
Business Standard

Saudi's largest lender NCB agrees to buy rival Samba for $15 billion

NCB agreed to pay 28.45 riyals ($7.58) for each Samba share on Sunday, valuing it at about 55.7 billion riyals

Topics
Saudi Arabia

Adveith Nair | Bloomberg 

stake sale, disinvestment, psu, public sector undertaking, shares, stocks, growth, sale, buy
The offer price is a 3.5 per cent premium to Samba’s Oct. 8 closing price of 27.50 riyals | Illustration: Ajay Mohanty

National Commercial Bank, Saudi Arabia’s largest lender by assets, agreed to buy rival Samba Financial Group for $15 billion in one of the biggest banking takeovers this year.

NCB agreed to pay 28.45 riyals ($7.58) for each Samba share on Sunday, valuing it at about 55.7 billion riyals. NCB will offer 0.739 new shares for each Samba share, at the lower end of the 0.736-0.787 per share ratio agreed when the banks signed an initial framework agreement in June.

The offer price is a 3.5 per cent premium to Samba’s Oct. 8 closing price of 27.50 riyals and about 24 per cent higher than the price the shares traded at before the talks were made public in June. The combined bank will have total assets of more than $220 billion and a market capitalization of $46 billion.

Bloomberg News first reported the merger talks in June.

More details:

NCB’s existing shareholders will own 67.4 per cent and Samba’s shareholders will own 32.6 per cent of the combined entity.

Expects to unlock about 800 million riyals annually fully phased in cost synergies after integration.

Ammar AlKhudairy, current chairman of Samba, to become chairman of merged bank; Saeed Al Ghamdi, the current chairman of NCB, to become managing director and group CEO.

NCB advised by JPMorgan Saudi Arabia; Samba advised by Morgan Stanley

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, October 13 2020. 01:03 IST
RECOMMENDED FOR YOU
.