The Saudi British Bank (SABB) on 17 August 2017 has entered into an agreement with HSBC Asia Holdings BV and certain other wholly-owned subsidiaries* of HSBC Holdings plc (together HSBC), to purchase HSBC combined 32.5% shareholding in SABB Takaful (the Company) at a purchase price of SAR 10.66 per share, totaling SAR 117,793,000.
Completion of the transaction is subject to regulatory approvals and the approval of the general assembly which will be held as soon as possible.
Completion of the transaction is expected to occur during the second half of 2017, in which case it would be reflected in SABB year end 2017 financial statements.
Following the completion of the transaction, SABB would own 65% of the share capital of SABB Takaful.
The Company generated SAR194m gross written contributions in 2016 from Family and General Takaful business and as at year-end 2016 had total assets of SAR860m. Almost all of this business is acquired through an agency distribution arrangement with SABB and the transaction is expected to result in stronger strategic alignment between the two companies. Employees and Customers of the Company will not be affected by the transaction.
(*) The other wholly-owned subsidiaries referred to are Canada Crescent Nominees (UK) Limited, Canada Square Nominees (UK) Limited and Canada Water Nominees (UK) Limited)
(c) 2017 Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers