SAIB shareholders approve repurchase of JPMorgan’s stake

The Saudi Investment Bank’s (SAIB) extraordinary general assembly approved on Wednesday the buyback of JPMorgan International Finance Limited’s stake in the bank, it said in a statement to Tadawul.

SAIB will buy back 56.25 million shares, representing 7.49 percent of capital, at a total value of SAR 759.31 million (SAR 13.50 per share).

The bank will finance the deal from its own resources and assets, and does not intend to reduce capital in the process. Shares will be kept as treasury stock to be resold to shareholders with the same mechanism as a rights issue, within 18 months from the deal’s date and after obtaining all the due approvals, the lender said.

Shareholders have also granted a one-year authorization of the board of directors to finalize the deal with JPMorgan on one or several stages, it added.

On June 24, SAIB signed an agreement to purchase back JPMorgan’s entire stake in the bank, Argaam previously reported.