The boards of directors of Oman's Sohar International Bank and HSBC Bank Oman have approved their proposed merger on the terms and conditions approved in November 2022.

In separate statements to the Muscat Stock Exchange on Tuesday, the lenders said they will both continue to function as independent entities until the merger is completed. They have also each approved calling for an extraordinary general meeting of shareholders to consider the deal.

The merger is subject to regulatory approval, they added.

In November they agreed that HSBC Oman will be dissolved, and its shares cancelled. Its shareholders will be offered a consideration valuing HSBC Oman at 1.0X book value, and either Sohar International shares or a consideration in cash, not exceeding 70% of the total consideration.

Sohar shares that form a part of the consideration to HSBC Oman will be valued at 1.0X book value, which will be calculated for both lenders later.

(Writing by Brinda Darasha; editing by Seban Scaria)