Business Reporter –
Dec 20: Ubhar Capital SAOC (U-Capital), set up recently by Oman Investment Fund (OIF), Oman International Development and Investment Company (OMINVEST) and Arab Bank (Switzerland) (ABS), has agreed to acquire Oman Arab Bank’s (OAB) Investment Management Group business.
It follows a Memorandum of Understanding (MoU) reached by OIF, OMINVEST and ABS in March this year to acquire the Investment Management Group. A leading name in the investment sector in Oman, Investment Management Group has, over the past two decades established itself as one of the largest asset managers and a leading stock broker in the Sultanate and has executed some of the most notable corporate finance deals including initial public offerings (IPOs), debt placements and other advisory mandates.
The acquisition will encompass the entire existing Investment Management Group platform, including systems, human resources, licenses, assets and liabilities. U-Capital has also been granted Regulatory Approvals to acquire Investment Management Group from OAB and will provide significant strategic support to U-Capital to further develop and build its underlying lines of business. U-Capital will commence business operations in January 2017 and support services will include investment banking, asset management, brokerage and custody services.
Rashad al Zubair, Chairman of Oman Arab Bank said, “We are pleased that Investment Management Group has been a leading player in the investment banking sector in Oman and has been instrumental in Oman’s economic development over the past two decades. We at OAB are excited that U-Capital has long term sustainable growth plans for the company and with this new shift, we can focus on its core strengths of building world-class leading bank in Oman.”
Amin al Husseini, CEO of OAB, commented that the sale of Investment Management Group has been a concerted effort by the entire OAB management team and part of the overall strategy of the bank to augment its position in the bank’s other business verticals.
He thanked both the Central Bank of Oman and Capital Market Authority for creating a conducive investment environment and for their continued support and further added that the sale will significantly strengthen the bank’s financial position and the proceeds will be utilised to finance core strategic initiatives.
Lo’ai Bataineh, who will be heading U-Capital and who has headed Investment Management Group since its inception, is confident of the bright future of U-Capital with its expanded scope.
He added that his team has been in touch with their clients throughout the transition. All clients can be rest assured that there will be no impact on their services and mandates and that their transition from Investment Management Group to U-capital will be smooth and seamless.
Business Reporter –