SICO acquires Saudi firm

MANAMA: Sico has completed the acquisition of a majority stake in Saudi-based Muscat Capital, a wholly owned subsidiary of Bank Muscat.

The acquisition took place by way of a share swap valued at BD5.5 million, with 38,563,894 of Sico treasury shares being exchanged for 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 per cent of Muscat Capital while Bank Muscat owns a 9pc 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 also provides Sico with a direct presence in the region’s largest capital market, Saudi Arabia,” said Sico chairman Shaikh Abdulla bin Khalifa Al Khalifa.

“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.”

The Bahrain-based broker and investment bank’s chief executive Najla Al Shirawi said Muscat Capital will be rebranded as Sico Capital and will give Sico a strong competitive advantage as a regional market player.

“Muscat Capital, a full-fledged capital markets service provider with multiple licences 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,” she added.

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