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Oman’s Bank Nizwa has proposed a merger with Alizz Islamic Bank, while bringing Oman International Development and Investment Company (Ominvest) on board as a strategic stakeholder.
Bank Nizwa will offer an indicative valuation of 1.2 times book value and a stake of up to 20% to Ominvest through the subscription of new shares. The proceeds will be used to finance the deal, according to a bourse filing.
Bank Nizwa said the acquisition will be further financed through the issuance of an AT1 perpetual sukuk.
The companies did not disclose the value of the transaction, Ominvest's investment in Bank Nizwa or the size of the planned sukuk issuance. The proposed merger is non-binding and subject to regulatory approvals.
Alizz Islamic Bank is a wholly owned banking subsidiary of Oman Arab Bank following a takeover in 2020.
Ominvest is also a major shareholder in Oman Arab Bank, holding a 30.99% stake in the lender, according to LSEG data.
(Writing by Bindu Rai, editing by Seban Scaria)
