Oger ups Arab Bank stake

05 December 2003
Saudi Ogerhas acquired an 11 per cent stake in Amman-based Arab Bank, the second largest bank in the Arab world, in a deal reported to be worth about $375 million. Under the terms of the deal, Oger will be obliged to sell on 4 per cent of its stake to Jordan's state-owned Social Security Corporation (SSC) and 2 per cent to Abdul Majeed Shoman and his son Abdul Hamed - members of the bank's founding family.

Oger is owned by Lebanese Prime Minister Rafiq Hariri, who has been interested in increasing his stake in Arab Bank, and potentially moving its headquarters to Beirut, for several years (MEED 10:8:01). Banking sources say that the opportunity for Oger to acquire the 11 per cent stake arose when a deal fell through for an Arab-American investor to acquire the equity.

The redistribution of shares will take the total holding of Oger in Arab Bank to 13.9 per cent, that of the SCC to 14.5 per cent and that of Abdul Majeed and Abdul Hamed to 8 per cent.

Arab Bank had assets of JD 19,260 million ($27,127 million) at the end of 2002 and reported profits of JD 130.2 million ($183.4 million) for the year (MEED 14:2:03). In November, the bank acquired Atlas Investment in order to expand its investment banking offering (MEED 21:11:03).

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications