JPMorgan International Finance, a subsidiary of JPMorgan Chase, is set to divest a minority stake in Saudi Investment Bank in a deal worth $203m.
JPMorgan, which offers both commercial banking and investment banking services in Saudi Arabia, has held the stake since 1976.
It will offload the stake by selling its shares back to Saudi Investment Bank at a price of SAR13.5 per share. The size of the stake was not divulged by the companies.
Commenting on the move, JPMorgan senior country officer Bader Alamoudi said: “Globally, the firm has wound-down non-core holdings and projects over the past several years, and this proposed sale is consistent with that consolidation effort.”
The transaction is expected to be completed by the third quarter of this year.
Saudi Investment Bank was established in 1976 and is headquartered in the capital of Riyadh. The Sharia-compliant lender offers wholesale, retail, as well as commercial banking products and services.