Muscat - Following months of negotiations, the board of directors of Taageer Finance has rejected the revised offer of acquisition from Ahlibank and the deal has been called off by both companies.
In a filing to the Muscat Securities Market (MSM) on Sunday, Taageer Finance said, "Taageer received a revised offer on May 29, 2013, which was reviewed by the members of the Taageer's board of directors. The offer from Ahlibank was not accepted by the board of directors of Taageer and the MoU dated February 17, 2013 with Ahlibank stands cancelled." Ahlibank had offered to acquire the assets, liabilities and business of Taageer Finance on the basis of the MoU signed on February 17, 2013 between the two companies. This proposal was subject to satisfactory due diligence and securing the necessary regulatory and shareholder approvals.
Ahlibank in a separate disclosure to MSM on Sunday said, "Based on the above process, we submitted our revised offer to Taageer Finance which was not acceptable to the board of directors of Taageer Finance. The MoU of the 17th February 2013 stands null and void."
On May 19, Ahlibank had said that it has completed the due diligence but sought an extension, until the end of June, on the MoU, which expired on May 17.
On Sunday, Taageer Finance shares declined 1.25 per cent on the Muscat Securities Market (MSM), while Ahlibank shares were up 0.51 per cent.
© Muscat Daily 2013
