Oman International Development and Investment Company (Omivest) on Sunday announced that its banking subsidiary Oman Arab Bank (OAB) has received a communication from Alizz Islamic Bank (AIB) indicating the latter’s board approval for the swap ratio for the proposed merger of the two banks.
OAB is the banking subsidiary of Ominvest. In a report submitted to the Muscat Securities Market on Sunday Ominvest said, ‘OAB has received a letter from AIB on Thursday stating that the board of directors has approved the offer with the proposed swap ratio of around 81 per cent: 19 per cent for the shareholders of OAB and AIB, respectively.’
The actual swap ratio will be based on the net asset value as per the audited financial statements for the year ended December 31, 2019, Ominvest said in the filing to the Muscat Securities Market.
The filing further explained that ‘appropriate price adjustments will be made to movements in both the banks’ financials between December 31, 2019 and the actual transaction date’.
The proposed merger and the swap ratio shall be subject to the approval of the shareholders, the Central Bank of Oman, the Capital Market Authority and other relevant authorities, Ominvest’s filing to the MSM added.