RIYADH: Saudi Oger has begun talks with potential buyers for its 20.93 per cent stake in Arab Bank in a deal that could raise about $1bn for the embattled construction giant, sources aware of the matter told Reuters.
Oger was one of two large Saudi contractors charged with implementing the kingdom’s grand infrastructure plans before the fall in oil prices and consequent state spending cuts left the company facing a multibillion-dollar debt restructuring to stave off collapse. A small number of potential buyers from Saudi Arabia and the wider Middle East have started negotiations, five sources said on condition of anonymity because the information had not been made public.
A spokesman for Saudi Oger, which is owned by the family of former Lebanese Prime Minister Saad Hariri, did not respond to requests for comment. Hariri’s political offices in Beirut said it was a matter on which only Saudi Oger could comment. Among the interested parties vying for the Arab Bank stake is Saudi Arabia’s al-Hokair family, two Gulf-based sources said.
The family is best known for its Fawaz Al Hokair fashion retail business, the Middle Eastern franchisee for brands including Zara and Banana Republic, but also has interests in real estate and hospitality, as well as finance and investments through its FAS Capital arm. Managing director Abdulmagid al-Hokair did not respond immediately to calls and a text message.
One possible buyer has contacted banks about raising between $700m and $1bn to finance a bid, said one of the Gulf sources and two other sources. They declined to name the potential bidder. A spokesman for Arab Bank, which has operations across the Middle East and a total of 600 branches on five continents, did not respond immediately to a request for comment.
