Muscat – BankDhofar, Oman’s second-largest lender in terms of assets, has presented a revised non-binding merger offer to its smaller rival Ahli Bank just a day after an Ominvest-led consortium expressed its intentions to bid for Ahli Bank.

On April 10, the board of directors of BankDhofar initially submitted a non-binding offer to Ahli Bank’s board to explore the possibility of a merger between the two banks. However, Ahli Bank’s board promptly rejected the proposal from BankDhofar the following day.

In a disclosure to the Muscat Stock Exchange on Wednesday, BankDhofar said, “We believe that a combination of BankDhofar and Ahli Bank is a compelling opportunity for Ahli Bank shareholders.”

Acknowledging the announcement made by the Ominvest-led consortium regarding its plan to make an offer for the entire issued share capital of Ahli Bank, BankDhofar said, “Our commitment to proceed with our revised offer remains unchanged, and we look forward to further engagement with the Ahli Bank board.”

BankDhofar added, “Any transaction, should it proceed, is subject to obtaining approvals from the relevant regulators and respective boards of directors and shareholders of BankDhofar and Ahli Bank. Further announcement will be made if and when appropriate.”

Ahli Bank, in a separate disclosure, confirmed the receipt of BankDhofar’s revised non-binding merger offer. “The board of directors of the bank will study the revised non-binding offer, and any material developments in this regard will be announced in due course,” Ahli Bank said.

Regarding the announcement made by the Ominvest-led consortium, Ahli Bank noted that its board of directors is considering the letter of intent received from Ominvest.

“The board will make the relevant disclosures in due course in accordance with the applicable laws and regulations. Further details will be disclosed by the bank upon its receipt of Ominvest’s written formal offer,” Ahli Bank added.

Ominvest on Tuesday announced that it is planning to lead a consortium that will make an offer to acquire the entire issued share capital of Ahli Bank. It said the offer will be made by certain entities separately controlled by Ominvest and Arab Bank (consortium), adding that certain other investors have also expressed their desire to join the consortium.

Ominvest stated that the consortium would act as a committed anchor investor, supporting Ahli Bank’s growth and providing strategic direction.

According to Ominvest’s disclosure, the consortium will make a cash offer of 185bz per share (base offer price) for Ahli Bank. The base offer price represents a premium of approximately 28 per cent over Ahli Bank’s average one-year market price of 144bz and an 8 per cent premium compared to the closing stock price for Ahli Bank as of March 31, 2023.