BLC Clarifies January 2019 Block Trades on its Listed Ordinary Shares

The Beirut Stock Exchange (BSE) released a statement by BLC which details two block trades of the bank’s ordinary shares conducted on January 11th 2019.

Details of the Two Trade Blocks performed on BLC’s ordinary listed shares:

 

Shareholder(s)

Nbr. of BLC ordinary listed shares transferred  

Beneficiary

 

Price per share

 

Total Transaction Value ($)

Holding M. Sehnaoui SAL 21,365,000 BLC Bank SAL $2.37 $50.6M
Mr. Maurice Sehnaoui, Walid Ziade, Ms. Youmna Ziade, Silver Capital Holding SAL, and

Holding M. Sehnaoui SAL

18,857,254 Fransabank SAL $2.4 $45.82M

Source: BLC Bank, Beirut Stock Exchange

In fact, the first trade is represents 10% of the Bank’s share-capital[1], while the second one represents an 8.83% transfer of BLC’s share-capital.

The statement also clarifies that the 5 shareholders transferred to Fransabank SAL 9,546,628 “unlisted ordinary common shares” over the counter (OTC), which is equivalent to 4.47% of BLC’s share-capital.

Furthermore, the ownership of 3,000 “guarantee shares[2]” owned by the 3 shareholders: Mr. Shenaoui, Mr. Ziade and Ms. Ziade will be transferred to Fransabank SAL post-BLC’s meeting to approve the bank’s 2018 accounts.

Following the two block trades, Fransabank now owns 81.87% of BLC’s share-capital, while each of Mr. Maurice Sehnaoui, Walid Ziade, Ms. Youmna Ziade, Silver Capital Holding SAL, and Holding M. Sehnaoui SAL are no longer shareholders in BLC Bank SAL.

The capital gains realized by Mr. Sehnaoui from the deal are estimated at $51M. In 2008, Mr. Sehnaoui acquired 28.8M shares at $1.53 per share. On the date of the transaction, Mr. Sehanoui owned around 40M shares, out of which 11M were due to an increase in capital, that was distributed for free to shareholders at a pro-rata basis.

[1] “Share-capital” is the bank’s capital raised from equity (shares).

[2] “Guaranteed” stock is a share in a company for which a 3rd party (bank or company) promises to pay dividends, in case the issuing company defaults.

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