21 Jan 2010 14:12
For Immediate Release 21 January 2010
Byblos Bank SAL
Re: Sale of Shares and Capital Increase
In the context of a proposed USD$250 million capital increase, Byblos Bank SAL (the Bank) is pleased to announce that its principal shareholder, Byblos Invest Holding SA (Luxembourg) (Byblos Invest) has entered into a share purchase agreement with International Finance Corporation (IFC) regarding the purchase by IFC from Byblos Invest of 47,619,047 common shares of the Bank at a price of USD$2.1 per common share, for an aggregate purchase price of approximately USD$100 million (the Sale). Closing is subject to the approval of the Central Bank of Lebanon, which was obtained on 21 January 2010, and to other customary closing conditions.
Byblos Invest has agreed to vote in favour of the election of an IFC nominee as board member of the Bank.
The Board of Directors of the Bank has approved in principle, subject to the Central Bank of Lebanon and shareholders' approvals, a USD$250 million capital increase, at a price per common share of the equivalent in Lebanese Pounds of USD$1.75, including nominal value and issue premium (the Capital Increase). Subscription to the Capital Increase will be reserved to the Bank's holders of common and priority shares. Holders of GDRs representing common shares are expected to participate in the Capital Increase, subject to the standard conditions and restrictions applicable to GDR holders.
Byblos Invest and IFC have agreed that IFC will not participate in the Capital Increase and Byblos Invest will utilise all of the proceeds from the Sale to subscribe to the Capital Increase.
Following closing of the Sale and the Capital Increase, IFC will hold approximately 8% of the common shares of the Bank.
The closing of the Sale and the Capital Increase are expected to take place before June 30, 2010 .
Further details regarding participation in the Capital Increase will be provided in due course.
END OF STATEMENT