The National Commercial Bank, the largest Saudi bank, entered into a binding merger agreement with Samba Financial Group to establish a unified entity with assets amounting to 837 billion riyals or the equivalent of 223 billion dollars.
According to Arabiya Net, Samba shareholders will get 0.739 new shares in Al-Ahly Commercial for every share they own in Samba, according to Al-Ahly Commercial in a notification to the stock exchange. p>
And the Saudi Sovereign Wealth Fund, the Public Investment Fund, is a major shareholder in the two banks, with a stake of 44.29%, in Al-Ahly Commercial and 22.91%, in Samba.
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and in accordance with the provisions of the merger agreement, the merger will take place by merging the Samba Group into the National Bank and transferring all its assets and liabilities to the National Bank.
and upon completion of the merger, the National Bank will continue to exist. As for the Samba Group, all its shares will expire and the National Bank will issue new shares to the shareholders of the Samba Group and the reference is to the merging bank. In this announcement there is a reference to the National Bank after the completion of the merger.
The valuation of the share price of Samba Group for merger purposes is 28.45 Saudi riyals and the evaluation of the total value of the issued Samba Group shares is about 55.7 billion riyals.
The above evaluation represents an increase in the share price of Samba Group by 3.5% compared to the closing price of Samba Group's share in the Saudi Stock Exchange (Tadawul) of 27.5 riyals as on 8/10/2020, which is the last trading day before the date on which this announcement was published.
It also represents an increase in the share price of Samba Group by 23.7% compared to the closing price of Samba Group's share of 23 riyals as on 6/24/2020 (which is the last A trading day preceding the date on which the two banks entered into the framework agreement).
and the swap coefficient reflects a value representing 1.20 times the tangible book value of the Samba Group as of 6/30/2020, based on the swap factor and the closing price of the bank share Al-Ahly of 38.5 Saudi riyals as on 8/10/2020, which is the last trading day prior to the date this announcement was published.
upon completion of the merger, the current shareholders of the National Bank will own 67.4% of the capital of the merging bank, and the shareholders of the Samba Group will own 32.6% of the capital of the merging bank .
