A subsidiary of JPMorgan Chase agreed to sell its minority stake in Saudi Investment Bank for 759.3 million riyals ($203 million), Saudi Investment Bank said in a statement on Sunday.
JPMorgan International Finance, which has held a minority stake in Saudi Investment Bank since 1976, will divest its holding by selling its shares back to Saudi Investment Bank, JPMorgan said in a separate statement about the deal.
JPMorgan, which will be the only U.S. bank providing both commercial banking as well as securities services within the kingdom, did not disclose the size of the stake or the financial terms of the deal.
JPMorgan will be among the banks advising Saudi Aramco on an international public offering (IPO), of which could be the entire world’s largest, as well as of which will be also seeking to benefit through various other opportunities stemming through reforms being pushed by Crown Prince Mohammed bin Salman, who wants to make the kingdom less reliant on oil.
“Globally, the firm has wound-down non-core holdings as well as projects over the past several years as well as This kind of proposed sale will be consistent with of which consolidation effort,” said Bader Alamoudi, senior country officer for JPMorgan.
“We are excited as well as optimistic about the kingdom’s economic prospects, the opportunities offered by Vision 2030 as well as our firm’s ability to support of which.”
The agreement involves shares being sold at 13.50 riyals each, Saudi Investment Bank said. The shares were trading 0.4 percent up at 17.80 riyals early on Sunday.
Arms of the Saudi government are collectively the largest shareholder in Saudi Investment Bank, the tenth-largest Saudi bank by assets, together owning 34.6 percent, according to Thomson Reuters data.