SABB Takaful rights issue starts

SABB Takaful announces its rights issue started Saturday, 15 August 2009.
A number of 24m new shares are offered through this rights issue representing a 240% increase in SABB Takaful's shares to 34m. Shares are being offered at SR12.5 per share. The rights issue offering period will continue for ten working days including Wednesday 26 August 2009.

Dr Yazid AbdulRahman Al Ohaly, Chairman of SABB Takaful said:

'This is the first rights issue held in the Kingdom for an insurance company and the proceeds will be used to finance the future plans of the company. We are pleased to announce the start of the subscription period.'

Shareholders voted at the Extraordinary General Meeting, held at The Saudi British Bank headquarters in Riyadh on 8 August 2009 to increase the company's capital through a rights issue.

The offering is open to all SABB Takaful registered shareholders as of the close of trading on 8 August 2009. 12 shares is allocated for every 5 shares held by shareholders on the eligibility date.

During the offering period, eligible shareholders may submit their applications to subscribe for rights issue shares either through a branch of the receiving banks or tele-banking services section or automated teller machines (ATMs) or the internet banking service of any of the receiving banks providing such services.

Receiving banks for the rights issue are The Saudi British Bank (SABB), Al Rajhi Bank, The National Commercial Bank (NCB or otherwise known as Al Ahli Bank), Bank Al Jazira, and Samba Bank.

--AMEInfo