Tuesday 12, September 2017 by Jessica Combes

Crédit Agricole sells a 16.2 per cent stake in Banque Saudi Fransi


Crédit Agricole S.A. announced that its subsidiary Crédit Agricole Corporate & Investment Bank S.A. (CACIB) has signed an agreement with Kingdom Holding Company (KHC) whereby CACIB has agreed to sell a 16.2 per cent equity stake in Banque Saudi Fransi (BSF).

The total consideration amounted to approximately SAR 5.8 billion, at a price of SAR 29.5 per share, which is approximately 1.3 billion euros. CACIB is thereby reducing its shareholding in BSF to 14.9 per cent.

“Crédit Agricole has contributed over the last four decades both capital and expertise to develop BSF into one of the most successful banks in Saudi Arabia. BSF is a fully-fledged bank and a highly regarded asset and CACIB intends to remain a strategic partner going forward,” said Jean-Yves Hocher, Chief Executive Officer of CACIB.

Completion of the transaction is still subject to regulatory approvals and is expected to occur during the second half of 2017. CACIB will remain opportunistic in evaluating any interest in a potential off-market disposal of a further equity stake of up to five per cent in BSF provided it is on at least equally favourable terms.

“CACIB remains highly confident in Saudi Arabia’s future, in the wake of Vision 2030, and plans to further develop its direct presence and extend its activities in the country,” said Hocher.

CACIB is committed to keeping a stake of at least 9.9 per cent in BSF for a period ending one year after the closing of the transaction.

For Crédit Agricole, which has been active in Saudi Arabia since 1949 and associated with BSF since its creation in 1977, supporting its successful and profitable growth over several decades, this disposal is aligned with its strategy to reduce the weight of its non-controlling stakes. Crédit Agricole reiterated its confidence in the future development of BSF, and looks forward to continue working with BSF as a shareholder and strategic partner, and with KHC as a new long-term shareholder of BSF.

The disposal of this 16.2 per cent stake in BSF will have a positive impact of around 20 basis points on the fully-loaded CET1 ratio of Crédit Agricole S.A. and of around five basis points on the fully-loaded CET1 ratio of Crédit Agricole Group.



Features & Analyses