The proposed merger of Gulf Investment Services Holding Company with Oman Investment and Finance Company (OIFC) is all set to go ahead after the firms announced on Wednesday that the shareholders of the two companies have approved the merger plan.
Earlier in December, OIFC and Gulf Investment Services announced the completion of the due diligence reports on the proposed merger between two companies and their respective boards of directors had recommended to the shareholders to approve the merger deal.
Both OIFC and Gulf Investment Services convened the extraordinary general meetings (EGM) of their shareholders on Tuesday via the online platform for general meetings through the Muscat Clearing & Depository Company’s website.
‘The proposed merger between OIFC (the merging company) and Gulf Investment Services (the merged company) under which Gulf Investment Services will merge into OIFC, as per the Commercial Companies Law, was approved [by the shareholders at the EGM],’ OIFC said in a disclosure filed to the Muscat Securities Market (MSM) on Wednesday.
OIFC shareholders approved the proposed increase in the company’s authorised capital from RO20mn to RO30mn. The proposed increase in the company’s paid-up capital from RO20mn to RO23.7mn was also approved at the EGM, OIFC said.
As per the OIFC disclosure, the increased paid-up capital shall be allocated to Gulf Investment Services’ shareholders on pro-rata of their shareholding in Gulf Investment Services.
OIFC shareholders also approved the issuance of secondary, unsecured bonds with a value of RO750,000 for a term of five years with 5 per cent interest rate. ‘The bonds shall be allocated to the Gulf Investment Services’ shareholders on pro-rata of their shareholding in Gulf Investment Services,’ OIFC said.
The EGM also approved the proposal to increase the number of directors of OIFC from seven to nine directors and change the Articles of Association accordingly. OIFC said its board of directors or any of the directors has been authorised to complete all required procedures and obtain all approvals to effect the decisions of the EGM with regards to the merger.
In a separate disclosure to the MSM, Gulf Investment Services also confirmed that its shareholders have approved the dissolution and merger of Gulf Investment Services with OIFC by the way of annexation in accordance with the sultanate’s Commercial Companies Law.
The EGM of Gulf Investment Services authorised the company’s board of directors to complete all the procedures and approvals required to implement the decision with regards to the merger.
OIFC and Gulf Investment Services both are listed on the Muscat Securities Market.