SICO BSC (c), a leading regional asset manager, broker, market maker and investment bank (licensed as a wholesale bank by the CBB), announced today that it has completed the transaction to acquire a majority stake amounting to 72.7% in the Saudi-based Muscat Capital, a wholly owned subsidiary of Bank Muscat after obtaining all relevant approvals.
The acquisition took place by way of a share swap valued at BD 5.5 million, with 38,563,894 of SICO’s treasury shares swapped for a majority stake amounting to 4,362,491 shares out of Muscat Capital’s 6,000,000 total outstanding shares. As a result of the transaction, SICO owns 72.7% of Muscat Capital while Bank Muscat owns a 9% stake in SICO.
“We are extremely pleased to complete this landmark acquisition of Muscat Capital which is a major step in our regional expansion and growth strategy. This acquisition also provides SICO with a direct presence in the region’s largest capital market, Saudi Arabia, which is a major milestone in cementing SICO’s position as a leading regional investment bank,” said Shaikh Abdulla bin Khalifa Al Khalifa, SICO’s Chairman of the Board. “We look forward to our new partnership with Bank Muscat and would like to welcome them as SICO’s newest shareholder as we work together to uncover new growth opportunities in the regional markets.”
“Muscat Capital, a full-fledged capital markets service provider with multiple licenses including asset management, investment banking, and brokerage, provides SICO with an ideal platform to further leverage and offer its proven capabilities to a wider client base in the region’s largest capital market,” said SICO CEO Najla Al-Shirawi. “Muscat Capital will be rebranded as SICO Capital after obtaining the required approvals and will give SICO a strong competitive advantage as a regional market player. SICO looks forward to further enhancing the entity’s established platform in the Kingdom and build on its track record professional team and is excited to explore new opportunities both in Oman and the wider region with its new shareholder, Bank Muscat.”
“I would like to thank all the regulators In Bahrain, Saudi and Oman for their timely support and approvals for the transaction as well as all advisors and consultants who worked with us to conclude the transaction successfully. I would also like to extend my thanks to Legal Advisors Abdulaziz Alajlan & Partners in association with Baker & McKenzie Limited who advised SICO on the legal aspects of the transaction.” added Al-Shirawi.
Bank Muscat is a leading financial institution based in the Sultanate of Oman and operating under a banking license issued by the Central Bank of Oman. Its subsidiary, Muscat Capital, is a full-service capital market institution established in 2009 operating in Saudi Arabia and licensed by the Saudi Arabian Capital Market Authority.
SICO is a leading regional asset manager, broker, market maker and investment bank, with USD 2.3 bn in assets under management (AUM). Today SICO operates under a wholesale banking licence from the Central Bank of Bahrain and also oversees three wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Financial Brokerage, a specialised regional custody house, SICO Fund Services Company (SFS), and a Saudi-based asset management provider, SICO Financial Saudi Company. Headquartered in the Kingdom of Bahrain with a growing regional and international presence, SICO has a well-established track record as a trusted regional bank offering a comprehensive suite of financial solutions, including asset management, brokerage, investment banking, and market making, backed by a robust and experienced research team that provides regional insight and analysis of more than 90 percent of the region’s major equities. Since inception in 1995, SICO has consistently outperformed the market and developed a solid base of institutional clients. Going forward, the bank’s continued growth will be guided by its commitments to strong corporate governance and developing trusting relationships with its clients. The bank will also continue to invest in its information technology capabilities and the human capital of its 100 exceptional employees.
© Press Release 2021