As part of its strategy to exit non-core operations across the globe, JPMorgan’s (JPM - Free Report) subsidiary, JPMorgan International Finance is selling its 7.5% stake back to Saudi Investment Bank for 759.3 million riyals ($203 million). The transaction, expected to close by September-end, is still subject to regulatory approvals.
Notably, the Saudi bank will pay 13.5 riyals a share (a discount of nearly 24%) and plans to hold the shares as treasury stock, which will be re-issued as preferred shares later on.
Apart from JPMorgan, several other global banks including Royal Bank of Scotland and Credit Agricole SA (CRARY - Free Report) are selling their stakes in local banks.
Nonetheless, JPMorgan is the only U.S. bank with both investment and commercial banking licenses operating in Saudi Arabia.
Despite selling its stake, the company is looking forward to business opportunities stemming from reforms announced by the kingdom’s crown prince. Also, it is among the banks that are advising Saudi Aramco on an international public offering, which is expected to be the largest in the world.
Per the data compiled by Bloomberg, JPMorgan is ranked second to HSBC Holdings (HSBC - Free Report) for M&A advisory in the country over the past seven years. JPMorgan in a statement commented that it is the process of “steadily increasing its local equities execution and custody capabilities.”
Further, Bader Alamoudi, senior country officer for JPMorgan said, “We are excited and optimistic about the kingdom's economic prospects, the opportunities offered by Vision 2030 and our firm's ability to support it.”
Shares of JPMorgan have rallied 21.2% in the past year, outperforming the industry’s rise of 13.3%.
Currently, JPMorgan carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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As part of its strategy to exit non-core operations across the globe, JPMorgan’s (JPM - Free Report) subsidiary, JPMorgan International Finance is selling its 7.5% stake back to Saudi Investment Bank for 759.3 million riyals ($203 million). The transaction, expected to close by September-end, is still subject to regulatory approvals.
Notably, the Saudi bank will pay 13.5 riyals a share (a discount of nearly 24%) and plans to hold the shares as treasury stock, which will be re-issued as preferred shares later on.
Apart from JPMorgan, several other global banks including Royal Bank of Scotland and Credit Agricole SA (CRARY - Free Report) are selling their stakes in local banks.
Nonetheless, JPMorgan is the only U.S. bank with both investment and commercial banking licenses operating in Saudi Arabia.
Despite selling its stake, the company is looking forward to business opportunities stemming from reforms announced by the kingdom’s crown prince. Also, it is among the banks that are advising Saudi Aramco on an international public offering, which is expected to be the largest in the world.
Per the data compiled by Bloomberg, JPMorgan is ranked second to HSBC Holdings (HSBC - Free Report) for M&A advisory in the country over the past seven years. JPMorgan in a statement commented that it is the process of “steadily increasing its local equities execution and custody capabilities.”
Further, Bader Alamoudi, senior country officer for JPMorgan said, “We are excited and optimistic about the kingdom's economic prospects, the opportunities offered by Vision 2030 and our firm's ability to support it.”
Shares of JPMorgan have rallied 21.2% in the past year, outperforming the industry’s rise of 13.3%.
Currently, JPMorgan carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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