BRIEF-Saudi's Alawwal Bank Says In Advaced Talks On SABB Merger
May 16 (Reuters) - ALAWWAL BANK:
* ANNOUNCES THE LATEST DEVELOPMENTS IN RELATION TO PROPOSED MERGER WITH THE SAUDI BRITISH BANK (SABB)
* CONFIRMS THAT DISCUSSIONS IN RELATION TO POSSIBLE MERGER WITH SAUDI BRITISH BANK ARE AT AN ADVANCED STAGE
* BOARDS OF ALAWWAL BANK AND SABB HAVE REACHED PRELIMINARY, NON-BINDING AGREEMENT ON SHARE EXCHANGE RATIO
* BASED ON PRELIMINARY AGREEMENT, ALAWWAL BANK SHAREHOLDERS WOULD RECEIVE 0.485 SABB SHARES FOR EACH ALAWWAL BANK SHARE
* MERGER WOULD VALUE EACH ALAWWAL BANK SHARE AT SAR 16.3 AND ALAWWAL BANK'S EXISTING ISSUED ORDINARY SHARE CAPITAL AT APPROXIMATELY 18.6 BILLION RIYALS
* THIS REPRESENTS A PREMIUM OF 28.5 PERCENT TO ALAWWAL BANK SHARE PRICE AS OF MAY 14, 2018
* BINDING AGREEMENT IS YET TO BE ENTERED INTO BETWEEN ALAWWAL BANK AND SABB
* SHOULD MERGER PROCEED, IT WOULD REPRESENT IMPORTANT DEAL IN CONTEXT OF DEVELOPING BANKING SECTOR OF SAUDI
* SAYS "DOES NOT EXPECT THAT PROPOSED MERGER WILL, IF COMPLETED, RESULT IN ANY INVOLUNTARY LAYOFF OF EMPLOYEES" Source text for Eikon: Further company coverage: