Muscat – Sohar International Bank on Sunday marked a historic moment in its journey by ringing the market-opening bell at the Muscat Stock Exchange (MSX). The occasion celebrated the successful merger of HSBC Bank Oman with Sohar International, solidifying the bank’s position as one of the fastest-growing financial institutions in Oman.

‘In accordance with disclosures pertaining to the merger between Sohar International and HSBC Oman, and based on the confirmation issued by the Ministry of Commerce, Industry and Investment Promotion (MOCIIP), Sohar International is pleased to announce the merger’s completion as of August 17, 2023,’ Sohar International said in a disclosure to the Muscat Stock Exchange (MSX).

HSBC Oman has now fully merged with Sohar International, and all rights, obligations, assets (including contracts and employees), and liabilities of HSBC Oman have been transferred to Sohar International (as a going concern), as stipulated by the law, the disclosure said.

After the merger’s completion, HSBC Oman has been delisted from the Muscat Stock Exchange.

‘HSBC Oman’s commercial registration, previously maintained with MOCIIP, has been cancelled, and its separate corporate identity and distinct legal status no longer exist. Furthermore, all its shares have been cancelled,’ Sohar International noted.

Sohar International reported that it has received confirmation from the Muscat Clearing and Depository Company (MCD) that all shareholders of HSBC Oman have received their full consideration for the merger. This consideration could be in the form of cash, fully paid-up shares in Sohar International, or a combination of both, in accordance with the terms outlined in the merger agreement dated November 15, 2022.

As per the bank’s disclosure, the Capital Market Authority (CMA) has also confirmed its approval for the increase of Sohar International’s issued share capital and the issuance and allotment of Sohar International shares to HSBC Oman shareholders.

The Muscat Stock Exchange approved the increase of Sohar International’s share capital and the listing of shares in the regular market of the MSX, effective from August 20, 2023.

The bell-ringing ceremony was attended by H E Abdulsalam bin Mohammed al-Murshidi, president of Oman Investment Authority, and H E Abdullah bin Salim al Salmi, executive president of the CMA. They were joined by Mohammed Mahfoodh al Ardhi, chairman of Sohar International, and Ahmed al Musalmi, CEO of Sohar International, along with other members of Sohar International’s board and executive management.

In a press statement, Ardhi said, “This glorious occasion marks the start of a new era for Sohar International – one that is marked with abundant growth prospects, not only for the bank but also for its stakeholders, investors, customers, and the thriving community that we proudly serve. As we embark on this transformative path, we stand firm in our unwavering commitment to inspire and innovate, steering our banking horizons to new heights of excellence.”

Musalmi said, “The merger represents a momentous milestone that galvanizes our ambition to propel Sohar International to the pinnacle of success. It will act as a crucial catalyst in our relentless pursuit of advancing the financial ecosystem in Oman and exceeding the ever-evolving demands of a dynamic market. As we move forward, we will continue to reaffirm our position as a reliable partner in building a resilient economy for the nation.”

According to the bank’s statement, the merger opens a plethora of opportunities for Sohar International as it embarks on an exciting journey of strategic growth. The bank has diligently laid the groundwork to amplify its operations and expand its reach, both within and outside Oman. The infusion of additional capital allows for increased lending and investments, fortifying the bank’s position as a key driver of economic growth and prosperity.