Samba Financial Group and National Commercial Bank (NCB) are moving forward at a quick pace with the biggest merger of its kind in the Middle East.
Saudi Arabia's Capital Market Authority (CMA) gave the green light for NCB to increase its capital from SAR30 billion ($8 billion) to SAR 44.7 billion ($11.9 billion), through issuing 1.478 billion ordinary shares.
The move aims to merge Samba Financial Group into NCB by transferring the former's assets and liabilities to the latter under share swap.
NCB will publish the capital hike circular within sufficient time before holding its extraordinary general meeting.
The market regulator approved the proposed offer timetable, as well as the publication of the merger offer submitted by NCB. The offer will be published to Samba shareholders within sufficient time before holding its extraordinary general meeting.
If NCB shareholders approve the capital increase, and Samba shareholders accept the merger offer in their extraordinary general meetings, the new shares will be issued to Samba shareholders who are registered at the Securities Depository Center (Edaa).
In addition, Samba shares will be delisted from Tadawul after the merger decision becomes effective.
CMA said shareholders must be informed of the circular and the offer and should study them carefully in order to reach the right decision when voting.
