Saudi PIF to buy 23.79% stake in Capital Bank Group for $185m

Public Investment Fund PIF
(Photo: Wikipedia)
AMMAN — Saudi Arabia’s Public Investment Fund (PIF) and Jordan’s Capital Bank Group announced on Sunday that they had signed a subscription agreement under which the PIF will become a strategic investor in the Group, the Jordan News Agency, Petra, reported.اضافة اعلان

Upon the successful completion of the deal, PIF will have a 23.97 percent stake in the Group’s capital via 63 million new shares valued at approximately $185 million.

The deal’s completion is still contingent on meeting the terms of the relevant agreements and gaining the necessary approvals from regulators and government agencies.

The transaction aims to increase the Group’s capital, bringing total shareholder equity to roughly $846 million, allowing the company to deliver on its strategy and expand its business in Jordan, Saudi Arabia, Iraq, and beyond. In addition, the transaction would improve the Group’s digital transformation goals by providing cutting-edge electronic services, such as the introduction of digital banks.

This deal is in line with PIF’s strategy, which includes exploring new investment opportunities in the MENA region that support the creation of long-term strategic economic partnerships to achieve sustainable returns that contribute to maximizing the fund’s assets and diversifying Saudi Arabia’s economy in line with Vision 2030.

The investment is intended to contribute to Capital Bank Group’s goal of favorably benefiting the Jordanian economy, as well as to highlight the bank’s growth prospects, particularly considering the Group’s strong equity position.

Following the acquisition of the assets and branches of Bank Audi in Jordan and Iraq, as well as Societe Generale-Jordan in less than a year, the Group now has a solid financial and credit position.

Read more Business
Jordan News