NCB, Samba sign framework agreement for merger – Saudi Gazette

NCB, Samba sign framework agreement for merger – Saudi Gazette

National Commercial Bank (NCB) and Samba Financial Group both announced the signing of a framework agreement Thursday to begin due diligence process, and negotiate definitive and binding terms of a possible merger.nNCB said “it entered into a Framework Agreement on June 25, 2020 with Samba Financial Group in order to begin a reciprocal due diligence process and to negotiate definitive and binding terms of a potential merger of NCB and Samba Financial Group (the “Proposed Transaction”).”nThe parties have also agreed in the Framework Agreement that they will negotiate definitive agreements in relation to the Proposed Transaction that will set out the relevant commercial terms thereof, including (without limitation):n(i) the final structure of the Proposed Transaction, (ii) the final exchange ratio, (iii) the name of the merging bank and the approach to its branding, (iv) the composition of the board and the parties’ approach to the management of the merging bank, and (v) the location of the head office of the merging bank.nThe Framework Agreement also includes customary provisions that regulate confidentiality, exclusivity, restrictions on trading and other related matters.nCompletion of the Proposed Transaction will be subject to various conditions including, but not limited to, approval of the Saudi Arabian Monetary