Oger sells 20 percent
stake in Arab Bank

Buyers include Arab

investors and bank’s chairman

Sabih Masri, Chairman of Arab Bank Group, and Jordanian, Saudi, and other Arab investors agree with Oger Middle East Holding to buy the latter’s 20 percent stake in Arab Bank. The stake was priced at $1.12 billion and the share price at 6.25 Jordanian dinars ($8.75), according to media reports citing Ghassan Aqeel, Deputy Managing Director of Astra Industrial Group.

Required measures are being taken to complete the deal, according to a statement Masri made to the Amman Stock Exchange.

No premium has been paid despite the fact that Arab Bank’s shares are undervalued since the price-to-book ratio is just 0.68, said a financial analyst in Beirut.

The stake was bought at near market price. The Jordanian bank’s implied valuation according to the deal’s value is four billion Jordanian dinars ($5.6 billion). Its market capitalization is now 3.9 billion Jordanian dinars ($5.4 billion), the analyst said.

Oger Middle East Holding is owned by the family of the late Prime Minister Rafic Hariri, with the exception of Bahaa.