By Nathan Allen 
 

Credit Agricole SA (ACA.FR) said late Friday that it agreed to sell a 4.9% stake in Banque Saudi Fransi (1050.SA) to Ripplewood Holdings LLC and Olayan Saudi Investment Company for 1.86 billion Saudi riyals ($495.4 million).

Ripplewood will take a 3% stake in the company via its RAM Holdings I Ltd fund, while Olayan will buy the remaining 1.9%, Credit Agricole said.

AS part of the deal Ripplewood also gains the right to acquire a further 6% stake in Banque Saudi Fransi for around SAR2.17 billion, which it must exercise before the end of December.

Following the transaction Credit Agricole will hold a 10% stake in Banque Saudi Fransi. If Ripplewood exercises the option to acquire a further 6% stake the deal will strengthen Credit Agricole SA's CET1 ratio by 15 basis points.

Credit Agricole said the disposal is part of its strategy to sell off its minority stakes.

 

Write to Nathan Allen at nathan.allen@dowjones.com

 

(END) Dow Jones Newswires

March 18, 2019 02:28 ET (06:28 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.