March 30, 2016
Muscat: Oman International Development and Investment Company (Ominvest), together with its strategic partners Oman Investment Fund (OIF) and Arab Bank (Switzerland) (ABS), has entered into a memorandum of understanding with Oman Arab Bank (OAB), to acquire OAB's Investment Banking Business (OABINVEST).
The deal is subject to satisfactory due diligence and necessary approvals from the regulators. With a successful track record spanning over two decades, OABINVEST is one of the largest asset managers in Oman. It serves leading institutional and ultra-high net worth (HNW) clients and has a healthy pipeline of corporate finance deals involving initial public offerings, debt placements and advisory mandates, according to a press release.
The new shareholding structure of OABINVEST will comprise Ominvest 36 per cent, ABS 34 per cent and OIF 30 per cent, said AbdulAziz Al Balishi, group chief executive officer of Ominvest. Al Balushi added that Oman's evolving economy presents significant opportunities for high-quality investment banking services and products. There has been an acute need for a larger local player with top-tier capabilities to effectively serve public and private sector clients.
Al Balushi said that this deal is also a major step towards building fee-based income sources for Ominvest and further diversifying its revenue streams.
In the midst of challenging economic situation and difficult market conditions normally arise attractive business and investment opportunities. This deal illustrates that a like-minded group of long-term value investors is capitalising on such opportunities and seizing the chance to buy and build profitable and durable businesses in keys sectors of the economy.
Prospective shareholders of OABINVEST intend to further grow this platform to create employment opportunities for Omani nationals, help finance new ventures and create value for their stakeholders.
It is an encouraging development that foreign investors are demonstrating serious interest in buying Oman-based businesses, underpinning their confidence in the potential of Omani market and commitment to partner with local institutional investors.
Nasri Malhame, chief executive officer of Arab Bank (Switzerland), said that ABS is pleased to join hands with Ominvest and Oman Investment Fund to acquire OABINVEST. He further said that ABS will provide strategic support to OABINVEST in building a multi-asset operation covering international markets by scaling up OABINVEST's resource base in regional and international set up.
Malhamé pointed out that it was a great opportunity for ABS to contribute to the development of Oman's economy and capital markets and that ABS stands to ultimately play an active role in the strategic positioning of the business.
An important aspect of this deal is that Oman Investment Fund, a major shareholder in Ominvest, is also co-investing in the transaction. Sheikh Hassan Al Nabhani, chief executive officer of Oman Investment Fund, stated that acquisition of OABINVEST is a major step towards realising their vision of creating a premier asset management company out of Oman - with global reach and capabilities.
He expects the new OABINVEST to cater to the investment needs of major institutional investors in Oman and across the region. Sheikh Hassan elaborated that OIF is highly supportive of such platform acquisitions to create larger and more efficient businesses under Ominvest's umbrella, creating economies of scale and realising synergies amongst OIF's major portfolio companies.
Oman Investment Fund has been focused on building highly competitive Omani institutions having profound impact on economic diversification, creating high-quality durable jobs for local professionals, leading the private sector and ensuring sustainable development of the nation.
Oman Arab Bank, established in 1984, is one of the largest banks in Oman with a balance sheet of around OMR2 billion.
Amin Al Husseini, chief executive officer of Oman Arab Bank, said that they were pleased to enter into an MoU with Ominvest-led consortium of highly reputed Omani and international institutional investors for the sale of its OABINVEST.
The sale encompasses the entire OABINVEST platform, include its systems, human resource, licenses and assets. He emphasised that the sale of OABINVEST will boost OAB's equity capital, significantly strengthen its financial position, and help finance strategic initiatives related to digital banking and electronic delivery channels.
© Times of Oman 2016
