In a significant development, Bank Dhofar has revised its non-binding merger offer for Ahli Bank a day after a consortium led by Oman International Development and Investment Company (Ominvest) said it has submitted an offer to acquire the lender.
In a disclosure to Muscat Stock Exchange on Wednesday, Bank Dhofar said a potential merger with Ahli Bank would provide a “compelling opportunity” for shareholders. The revised offer from Bank Dhofar comes after the board of directors of Ahli Bank rejected an initial, non-binding offer made in April 2023.
On Tuesday, May 16, Ominvest confirmed that it has formed a consortium with major shareholders of Oman Arab Bank (OAB) with the “firm intention” to acquire Ahli Bank’s entire issued capital.
Meanwhile, commenting on the offer, AbdulAziz Al Balushi, the Group CEO of Ominvest, said, “The Consortium sees Ahli Bank as one of the best-performing banks in the Sultanate of Oman, with a capable leadership team and leading operating and risk systems. The Consortium members will be strong and committed anchor shareholders of Ahli Bank, supporting its growth during the intervening period and preparing it for a potential merger with OAB in due course, under the guidance of the esteemed Board of Directors of both banks.”
“Given the combined track record and strength of Ominvest and Arab Bank, we are optimistic that this acquisition will be a success, and we look forward to working with all stakeholders of Ahli Bank and the concerned regulatory authorities to outline the next phase of the acquisition process,” he informed.
Robust banking system
“Following a successful merger, the new combined banking institution will gain size and scale as well as be better positioned to meaningfully contribute to the economic development of the Sultanate, supporting larger government projects of national interest,” stated Al Balushi.
“Furthermore, the Islamic window of Ahli Bank will be transferred to Alizz Islamic Bank, which is a fully owned subsidiary of OAB. This will provide additional scale and a significant boost to Alizz’s operations,” he noted.
Commenting on Bank Dhofar’s offer, Al Balushi said, “We extend our well wishes to all parties involved. Our foremost commitment is to support the deal or initiative that serves the best interests of the country, the banking sector, and all stakeholders, not just ourselves. We firmly believe that Ahli Bank’s shareholders should have the opportunity to make an informed decision about what is best for them.”
