Alawwal Investment Company, wholly owned by Saudi British Bank (SABB Bank), has entered into an agreement to purchase and transfer part of the assets of HSBC Arabia – of which SABB owns 49% of the shares – for 1.203 billion Saudi riyals (320.8 million dollars), according to the bank’s disclosure on the Saudi stock exchange (Trading) on Sunday.
Therefore, the value of the agreement is 56.9% higher than the previously announced initial estimated value of 766.49 million riyals.
SABB is a partner of the HSBC Group in Saudi Arabia, providing its services to individuals and businesses in the Kingdom.
SABB first announced the agreement in May 2021, identifying the transferred business as asset management, margin financing for the retail segment and retail brokerage.
According to a disclosure last year, the deal will allow HSBC Arabia to run its business through a smaller, less complex and easier to manage business model. On the other hand, the transaction will allow Alawwal Investment to focus on its retail wealth management and customer service business in terms of margin lending and brokerage.
(Edited by: Amani Radwan, Editing: Maryam Abdel-Ghani, contact [email protected])
#economic news
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