Proposed merger of Bank Sohar, Bank Dhofar will create Oman's second largest bank
The proposed merger would create a bank with combined assets of almost $16 billion, according to Bloomberg. (File photo)
Bank Sohar and BankDhofar on Wednesday announced that they have reached an agreement on the share swap ratio for the proposed merger between two banks.
‘The board of directors of Bank Dhofar is pleased to announce that they have reached an agreement with the board of directors of Bank Sohar on the share swap ratio’, Bank Dhofar said in a filing to Muscat Securities Market (MSM).
In a separate disclosure, Bank Sohar also confirmed the same.
As per the agreement between two banks, if the merger goes ahead, every one share of BankDhofar will be exchanged for 1.29 shares of Bank Sohar.
All other terms and conditions of the proposed merger will be agreed upon and documented in a merger agreement to be entered into by both banks, subject to regulatory and shareholders approvals, Bank Dhofar and Bank Sohar said in their disclosures.
‘We shall keep the shareholders and the market informed of any further developments through suitable disclosures in line with the disclosure requirements’, both banks said.
Earlier in April, BankDhofar had communicated to Bank Sohar the terms on which it was willing to proceed with the proposed merger between the two banks. Bank Sohar then had said that it is considering the terms offered by Bank Dhofar.
The two banks had initiated merger talks in July 2013.
Total assets of Bank Dhofar rose 14.25 per cent to RO3.76bn as of March 31, 2016 from RO3.29bn a year ago. Bank Sohar’s total assets increased 11.16 per cent to RO2.2bn from RO1.98bn a year ago.
- Al Tayer bucks the US department store trend with Bloomingdale's Kuwait opening
- Gulf Islamic banks set to outperform conventional banks for second year: Moody's
- Jordan secures EU finance for socioeconomic and environmental programs
- Same-day service deliveries in GCC an untapped market: Wing CEO
- Will terror attacks damper Arabs' appetite for European holidays?
- Emirates Bank International and National Bank of Dubai Announce Terms of their Proposed Merger - Merged bank to be called Emirates NBD PJSC
- Proposed Merger between Emirates Bank International and National Bank of Dubai
- Global Research Upgrades its Recommendation on Bank Dhofar and the intrinsic value is RO0.451.
- FGB and NBAD shareholders approve the merger to create UAE’s largest bank
- Oman: Banking merger talks collapse