Samba Financial Group jumped in the Kingdom of Saudi Arabia after the competing National Commercial Bank, the largest lender in the Kingdom in terms of assets, offered to acquire it with an amount up to $ 15.6 billion.
Shares rose 9.9% to 26.30 riyals until 10:16 am in Riyadh, while the National Commercial Bank rose 7.3%. The National Commercial Bank proposed to pay up to 29.32 riyals per share for Samba, at a premium of about 27.5%.
The Kingdom of Saudi Arabia is taking steps to support its banking sector from the double strike of the coronavirus shock and low oil prices. Lenders in the world’s largest oil exporter are expected to be hit hard by the closures and the reduced impact of spending.
The Public Investment Fund in the Kingdom of Saudi Arabia is the main shareholder of both lenders, with a 44.3% stake in National Commercial Bank and 22.9% of Samba. According to data compiled by Bloomberg, the assets of the joint bank will amount to about $ 210 billion, making it the third-largest bank in the Middle East after Qatar National Bank SAOG and First Abu Dhabi Bank SAOG.