MUSCAT: HSBC Bank Oman and Sohar International announced on Sunday that they have received the approval of the Central Bank of Oman (CBO) for their merger proposal.
The merger is expected to be completed in the second half of 2023 when approvals are expected from regulators and shareholders in the two banks.
In previous disclosures, the two banks disclosed the details of their merger plan and the obligations to which the two banks are committed to shareholders and customers as well.
The two banks said in separate regulatory announcements that all assets and liabilities of HSBC Oman will be transferred to Bank Sohar International.
HSBC Oman will be dissolved as a legal entity upon completion of the merger and its shares will be canceled.
HSBC Bank Oman had further stated in its filing: “HSBC Oman shareholders will be offered to consider rating HSBC Oman with a 1.0x book value, with this consideration consisting of Sohar International shares with an option for HSBC Oman shareholders to choose to receive the fee in cash, provided that it does not exceed the maximum cash payment you pay.
“The book value of each bank is calculated later (which is currently expected at the end of the first quarter of 2023) before banks invite their shareholders to vote on the merger at the Extraordinary General Assembly Meeting.”