Credit Agricole Reduces Stake in Banque Saudi Fransi
September 12 2017 - 4:00AM
Dow Jones News
By Nathan Allen
French banking group Credit Agricole SA (ACA.FR) said Tuesday it
will sell a 16.2% stake in Banque Saudi Fransi (1050.SA) to Saudi
Arabia's Kingdom Holding Company (4280.SA).
Kingdom Holding Company will pay 5.8 billion Saudi riyals ($1.55
billion) for the stake, equivalent to SAR29.50 per share.
Credit Agricole will retain a 14.9% sharehold in Banque Saudi
Fransi, or BSF, but said it was open to selling a further 5% as
long as the deal was on "equally favorable terms."
The French bank expects to complete the transaction in the
second half of the year and is committed to maintaining a 9.9%
stake in BSF for one year after the deal is closed.
Credit Agricole has been active in Saudi Arabia since 1949 and
associated with BSF since its formation in 1977.
The BSF deal aligns with Credit Agricole's strategy of reducing
its non-controlling interests in companies and will strengthen its
fully-loaded Common Equity Tier 1 ratio--a measure of financial
strength--by around 20 basis points, the company said.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
September 12, 2017 03:45 ET (07:45 GMT)
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