Jordan’s Capital Bank plans to acquire Chairman of Societe Generale Bank Jordan

AMMAN, Dec.26 (Reuters) – The board of directors of Jordan’s Capital Bank has approved a binding offer to acquire Societe Generale Bank Jordan (SGBJ), as part of a campaign to expand the bank’s presence to regional and national levels, its president said on Sunday.

Bassem Al Salem told Reuters that an extraordinary general meeting also agreed on Thursday to issue $ 100 million in perpetual bonds – meaning they have no maturity – to help spur growth.

The bonds, the first such debt to be issued by a Jordanian bank, and the takeover are pending approval by regulators and the Central Bank of Jordan, Al Salem said.

The planned acquisition of SGBJ, a licensed Jordanian bank with a capital of 100 million dinars ($ 140 million), is expected to be finalized in the coming months, Al Salem added.

“This decision will help support the bank’s future growth plans and reflects the strength of its financial position,” he said.

SGBJ is 87.7% owned by Société Générale de Banque au Liban, according to the latest information published on the SGBJ website.

Jordan Capital Bank completed earlier this year its acquisition of the operations of the Lebanese Audi Bank in Iraq and Jordan with the aim of diversifying and expanding its regional operations.

Reporting by Suleiman Al-Khalidi; edited by John Stonestreet and Emelia Sithole-Matarise

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