The Saudi British Bank (SABB) and Alawwal Bank announced the effectiveness of their merger after the expiry of the creditor objection period on 15 June.
Alawwal Bank noted that the bank did not receive any objections from creditors during this period, according to a filing to the Saudi Stock Exchange (Tadawul) on Sunday.
“Alawwal Bank has therefore ceased to exist as a separate legal entity and all of the assets and liabilities of Alawwal Bank have been transferred to SABB,” the statement highlighted.
Under the merger deal, all Alawwal Bank shares will be cancelled and SABB will, by way of increasing its paid-up capital from SAR 15 billion to SAR 20.547 billion, issue 554,794,522 ordinary shares in SABB, with a nominal value of SAR 10 apiece.
It is expected that the cancellation of the listing of Alawwal Bank’s shares on Tadawul will be completed within the next six trading period after this announcement.
Accordingly, the Saudi bourse has announced the trading suspension on Alawwal Bank’s shares in the market as of Sunday, 16 June.
“The Securities Depository Center (Edaa) will announce the implementation of the increase in the quantity of Saudi British Bank’s shares and the deposit of the new shares in the Center’s Accounts of all eligible Alawwal Bank shareholders after two business days from the effective date of the merger and up to 6 business days as per The Exchange and Center Procedures,” according to Tadawul’s statement.
In the same vein, SABB announced the resignation of the board of directors including Khaled Suliman Olayan, chairman of SABB.
It also appointed the following members nominated by Alawwal Bank pursuant to the merger agreement including Lubna Sulaiman Olayan as the bank’s non-executive director, among others.