Saudi Fransi to sell ten percent of BEMO Lebanon, and 27 percent of Syrian subsidiary
The management of Banque Saudi Fransi announced that it will sell its ten percent share capital in Banque BEMO Lebanon, and its 27 percent stake in Banque BEMO Saudi Fransi Syria, one of Syria’s three largest banks.
Banque BEMO Lebanon holds 22 percent of Banque BEMO Saudi Fransi, while the rest of its capital (51 percent) is typically held by Syrian partners (mainly from the Obegi family).
According to a statement by the Chairman of Banque Saudi Fransi, Saleh Al-Omair, the bank’s board of directors took a unanimous decision to sell the stake on November 26.
“The financial risks in the Arab Republic of Syria do not permit Banque Saudi Fransi to continue as partner,” the statement said. It said that the bank will assume the statutory and contractual formalities to complete the sale of its share capital in the two financial institutions. Banque Saudi Fransi is owned by Crédit Agricole Corporate & Investment Bank (31 percent), and Saudi shareholders (60 percent).
The directors representing Banque Saudi Fransi in the board of directors of the two banks submitted their immediate resignations.
In August 2010, Banque BEMO Saudi Fransi raised its capital to five billion Syrian pounds ($97.7 million). The banks profits in the first nine months of 2011 rose by 33 percent from the same period last year. Its assets stood at $1.75 billion at end-September.
The total assets of Lebanon’s Banque BEMO stood at $1.43 billion at end-September. The bank announced profits of seven million dollars for the first nine months of the year, almost unchanged from the same period of 2010 ($6.9 million). The Obegi family (Lebanon) holds 61.76 percent of the bank’s shares through the holding company ‘Sharikat Al Istismarat Al Oropia Lil Shark Al Aousat’.
Date Posted: Nov 28, 2011