SABB and First Bank signed a binding merger agreement recently, under which the two parties agreed to take the necessary steps to implement the merger transaction between them.

First Bank and SABB signed a binding merger agreement.

The two banks explained in their statements on Tadawul that under the terms of the agreement, the merger will take place by merging First Bank with SABB and transferring all of First Bank's assets and liabilities to SABB.

First Bank and SABB signed a binding merger agreement recently.

They noted that upon completion of the merger, SABB will continue to exist, First Bank will cease to exist and all of its shares will be canceled, and SABB will issue new shares to First Bank shareholders.

They added that if the merger is finalized, First Bank shareholders will receive 0.485 SABB shares for each share they own in First Bank (the "swap factor"), and these shares will be issued by increasing the capital of SABB by 37% from SAR 15 billion to SAR 20.55 billion and increasing the number of issued SABB shares from 1500 million shares to 2055 million shares.

If the merger is finalized, First Bank shareholders will receive a total of 0.485 shares in SABB for each share they own in First Bank (the "swap factor").