Shaikh Abdulla bin Khalifa Al Khalifa and Najla Al Shirawi.
Sico inks deal with Bank Muscat to buy entire stake in Saudi unit
MANAMA, September 20, 2022
Sico, a leading regional asset manager, broker, market maker and investment bank (licensed as a wholesale bank by the CBB), today (September 20) announced that it has signed an agreement with Bank Muscat to acquire the remaining 27.29% stake in Sico Capital, a Saudi-based full-fledged capital markets services provider.
Sico had acquired a majority stake amounting to 72.7% in the Saudi-based subsidiary of Bank Muscat in 2021 via a share swap and successfully rebranded it as Sico Capital, post the acquisition. Bank Muscat is a shareholder of Sico and currently owns 10.38% of the bank.
Confirming the deal, the Bahraini bank said the acquisition value for the remaining stake in Sico Capital, which is estimated to be BD1.9 million ($5 million) based on its net book value as of March 31, 2022, will paid in cash.
Bahrain-based Sico is a leading player in the region with $4.5 billion in assets under management (AUM). The transaction closure will be subject to receiving all the required regulatory approvals.
Once the deal gets through, Sico Capital will become a fully-owned subsidiary of Sico. The move is aligned with its commitment to Saudi Arabia and will enable the bank to achieve its strategic objectives, further enhancing its role as a regional investment bank.
Sico Capital is a full-service investment banking firm based in Riyadh that offers a comprehensive range of financial services to individual, institutional, and corporate clients.
With multiple licences by the Saudi Capital Markets Authority including asset management, investment banking, and brokerage, the company offers Sico an ideal platform to offer a diversified suite of services to a wider client base in Saudi Arabia, the region’s largest capital market.
Following the takeover of the majority 72.7% stake in March last year, Sico Chairman Shaikh Abdulla bin Khalifa Al Khalifa had said: "This acquisition 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."
"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," he noted.
CEO Najla Al Shirawi said Muscat Capital, a full-fledged capital markets service provider with multiple licenses including asset management, investment banking, and brokerage, will provide 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.
"We look forward to further enhancing the entity’s established platform in Bahrain and build on its track record professional team and Sico is excited to explore new opportunities both in Oman and the wider region with its new shareholder, Bank Muscat," she added.-TradeArabia News Service
