Alawwal Bank and Saudi British Bank entered into a binding merger agreement on 3 October 2018.
Sunday 27, January 2019 BY KUDAKWASHE MUZORIWA
Fitch Ratings is maintaining Alawwal Bank's long-term issuer default rating (IDR), support rating (SR) and viability rating (VR) on rating watch positive (RWP), ahead of the bank's merger with SABB.
In a statement, the rating agency stated that it is also maintaining SABB's SR and support rating floor (SRF) on RWP.
The merger of the two banks will be implemented in the form of a share swap with Alawwal shareholders receiving 0.485 SABB shares for each Alawwal share and following the issue of new shares, Alawwal's current shareholders will own approximately 27 per cent of the combined bank and SABB's shareholders will own 73 per cent.
The merger is still subject to regulatory approval and is expected to complete in Q1 2019.