|02 October, 2019

HSBC Group becomes major shareholder of its Saudi subsidiary

HSBC Saudi Arabia is now an indirect 51% owned subsidiary of HSBC Holdings plc, a statement by HSBC said

Image used for illustrative purpose. HSBC bank is pictured in Geneva, Switzerland, November 8, 2017.

Image used for illustrative purpose. HSBC bank is pictured in Geneva, Switzerland, November 8, 2017.

REUTERS/Denis Balibouse

HSBC Group has become a majority shareholder in its Saudi Arabian subsidiary by acquiring shares from the Saudi British Bank (SABB).

HSBC Saudi Arabia is now a 51 percent-owned (indirect) subsidiary of HSBC Holdings plc, a statement by HSBC said.

In April 2019, SABB announced that it has entered into a binding agreement with HSBC for the sale of 1 million shares in HSBC Saudi Arabia, representing 2 percent of the issued share capital of HSBC Saudi Arabia, for a total value of 36 million Saudi riyals.

SABB told Tadawul today that that all conditions related to the transaction have been satisfied and that the transaction has been completed on 1 October, 2019. SABB now holds 49 percent of HSBC Saudi Arabia’s shares.

“HSBC Saudi Arabia is well positioned to capture value and new opportunities in a country poised to benefit from one of the world’s most ambitious economic transformation programmes,” the HSBC statement said.

(Writing by Gerard Aoun, editing by Seban Scaria)

(gerard.aoun@refinitiv.com)

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© ZAWYA 2019

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