The Saudi British Bank "SABB" announced that its Board of Directors has decided to recommend to the Extra-Ordinary General Meeting, subject to the approval of official authorities, the increase of SABB capital by 33% from SAR 7.5 billion to SAR 10 billion by issuing of bonus shares to its shareholders at the rate of one bonus share for each 3 shares held to the shareholders registered in the Bank's shareholders register as of the end of trading on the Extra-Ordinary General Meeting day which is scheduled for the first quarter of 2012 and which shall be announced in due course.
The Capital increase of SAR 2.5 billion represents 33% of the Bank's capital so that the Bank's new capital will become SAR 10 billion compared to SAR 7.5 billion. As a result of the intended increase, the number of shares issued will increase from 750 million shares to 1000 million shares, as the additional increase will be used to enhance the bank’s capital base and grow its profits and consequently strengthening the shareholders returns.
The Board of Directors has also decided to recommend to the Bank's General Meeting the payment of annual cash dividends for 2011 of SAR 562.5 million at the rate of SAR 0.65, which represents 6.5% of the share's nominal value per share after deduction of Zakat, taking into consideration that the Cash Dividends shall not accrue to the bonus shares. Eligibility for these distributions will be to shareholders registered in the Bank's share register as of the end of trading on the Extra-Ordinary General Meeting day scheduled for the first quarter of 2012 and which will be announced in due course after having obtained the necessary approvals.