Bahrain's SICO buys majority stake in Saudi-based Muscat Capital

Business Monday 15/March/2021 18:29 PM
By: Times News Service
Bahrain's SICO buys majority stake in Saudi-based Muscat Capital
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Muscat: SICO BSC, a leading regional asset manager, broker, market maker and investment bank (licensed as a wholesale bank by the CBB), announced that it has completed the transaction to acquire a majority stake amounting to 72.7 per cent in the Saudi-based Muscat Capital, a wholly-owned subsidiary of Bank Muscat after obtaining all relevant approvals.

The acquisition took place by way of a share swap valued at BD 5.5 million, with 38,563,894 of SICO’s treasury shares swapped for a majority stake amounting to 4,362,491 shares out of Muscat Capital’s 6,000,000 total outstanding shares. As a result of the transaction, SICO owns 72.7 per cent of Muscat Capital while Bank Muscat owns a 9 per cent stake in SICO.

“We are extremely pleased to complete this landmark acquisition of Muscat Capital which is a major step in our regional expansion and growth strategy. This acquisition also provides SICO with a direct presence in the region’s largest capital market, Saudi Arabia, which is a major milestone in cementing SICO’s position as a leading regional investment bank,” said Shaikh Abdulla bin Khalifa Al Khalifa, SICO’s Chairman of the Board. “We look forward to our new partnership with Bank Muscat and would like to welcome them as SICO’s newest shareholder as we work together to uncover new growth opportunities in the regional markets.”

“Muscat Capital, a full-fledged capital markets service provider with multiple licenses including asset management, investment banking, and brokerage, provides SICO with an ideal platform to further leverage and offer its proven capabilities to a wider client base in the region’s largest capital market,” said SICO CEO Najla Al-Shirawi.

“Muscat Capital will be rebranded as SICO Capital after obtaining the required approvals and will give SICO a strong competitive advantage as a regional market player. SICO looks forward to further enhancing the entity’s established platform in the Kingdom and build on its track record professional team and is excited to explore new opportunities both in Oman and the wider region with its new shareholder, Bank Muscat.”

“I would like to thank all the regulators In Bahrain, Saudi and Oman for their timely support and approvals for the transaction as well as all advisors and consultants who worked with us to conclude the transaction successfully. I would also like to extend my thanks to legal advisers Abdulaziz Alajlan & Partners in association with Baker & McKenzie Limited who advised SICO on the legal aspects of the transaction,” added Al-Shirawi.

Bank Muscat is a leading financial institution based in the Sultanate of Oman and operating under a banking license issued by the Central Bank of Oman. Its subsidiary, Muscat Capital, is a full-service capital market institution established in 2009 operating in Saudi Arabia and licensed by the Saudi Arabian Capital Market Authority.