Oman's Ahli Bank is considering a letter of intent it received from Oman International Development & Investment S.A.O.G (Ominvest), to acquire its entire issued share capital.
Ominvest, one of the largest investment firms in the region, will subsequently merge the lender with Oman Arab Bank, Ahli Bank said in a regulatory filing on the Muscat Securities Exchange on Wednesday.
In a separate statement, Omnivest said the offer will be made by a consortium made up of Omnivest and Arab Bank along with "certain other investors" who desired to join.
The consortium will make a base price cash offer of 185 baiza ($0.48) per share, which offers a premium of approximately:
- 28% over Ahli Bank's one year market price of 144 baiza
- 13% over Ahli Bank's average six-month market price of 164 baiza
- 8% premium over the bank's closing stock price as of 31 March
- 20% over Ahli Bank's net book value as of 31 March 2023
Omnivest said Ahli Bank's stakeholders comprised of long-term strategic investors, who held more than 25% shareholding, financial investors who held between 10% and 25% and others who held less than 10% of the shareholding.
Long-term strategic investors will receive a base price offer plus 15 baiza while financial investors will receive base price offer plus 7 baiza. Other investors with less than 10% holding will receive the base price.
The potential acquisition will be funded by members of the consortium from their own funds and will results in "positive foreign direct investment" in Oman, Ominvest said.
Last month, Al Ahli Bank said it rejected the non-binding offer it received from Bank Dhofar S.A.O.G, Oman's second-largest lender by assets, which explored the possibility of a merger.
(Reporting by Brinda Darasha; editing by Seban Scaria)