Jordan's Capital Bank plans to acquire Societe Generale Bank Jordan

The board of Jordan's Capital Bank approved a mandatory offer to acquire Societe Generale Bank Jordan (SGBJ), part of a drive to expand the bank's foothold regionally and domestically, its chairman said on Sunday, Reuters reported. Bassem Al Salem told Reuters an extraordinary general meeting had on Thursday also agreed to issue $100 million in perpetual bonds - meaning they have no maturity - to help drive growth. The bonds, the first such debt to be issued by a Jordanian bank, and the takeover move are subject to approval by regulatory authorities and the Central Bank of Jordan, Al Salem said. The planned acquisition of SGBJ, a fully licenced Jordanian bank with 100 million dinars ($140 million) in capital, was expected to be finalised in the next few months, Al Salem added. "This move will help support the future plans of the bank to grow and reflects the strength of its financial situation," he said. SGBJ is 87.7% owned by Societe Generale de Banque au Liban, according to the latest information on SGBJ's website. Read more.