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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Ominvest helms consortium bidding for Ahli Bank

Strategic direction: Ultimate goal to enable merger of Ahli Bank with Ominvest subsidiary Oman Arab Bank
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In a significant development, Oman International Development and Investment Company (Ominvest) has announced it will helm a consortium bidding to acquire Ahli Bank SAOG.


Publicly traded Ominvest, a leading investment holding company, said in a regulatory filing that the consortium includes entities controlled by Arab Bank plc, with other investors expressing interest in joining the consortium. The proposed acquisition is in accordance with the Takeover and Acquisition Regulation (E/2/2019) set by the Capital Market Authority.


“Ominvest and the consortium have substantial experience in the regional financial services sector and are committed to being anchor investors, supporting Ahli Bank's growth and providing strategic direction,” it said in the filing.


The consortium aims to make a cash offer of 185 bz (base offer price) per share, providing an equitable opportunity for all Ahli Bank shareholders to participate in and benefit from the offer. Importantly, no conditions are expected to be imposed regarding the acceptance percentage by Ahli Bank shareholders.


According to Ominvest, this base offer price represents a premium of approximately 28 per cent over Ahli Bank's average one-year market price of 144 bz, 20 per cent over its net book value as of March 31, 2023, 13 per cent over its average six-month market price of 164 bz, and an 8 per cent premium compared to the closing stock exchange price as of March 31, 2023.


The shareholders of Ahli Bank have been categorized into three groups based on their shareholding as of May 15, 2023: strategic long-term investors (holding more than 25% shareholding), significant financial investors (holding between 10% to 25% shareholding), and other investors (holding less than 10% shareholding).


Under the proposed offer, Ahli Bank shareholders accepting the offer will be entitled to the following: Strategic long-term investors will receive the base offer price plus 15 bz; Significant financial investors will receive the base offer price plus 7 bz; Other investors will receive the base offer price.


“The consortium members already have a substantial stake in Oman Arab Bank SAOG (OAB), and the acquisition of Ahli Bank is viewed as a strategic opportunity to further strengthen Ahli Bank before a potential future merger between Ahli Bank and OAB, subject to regulatory and other approvals. This merger would result in the creation of a robust and sizeable financial institution in Oman,” Ominvest noted.


The proposed offer will be funded by the consortium members from their own funding sources, leading to positive foreign direct investment in Oman. Consequently, there will be no constraints on Ahli Bank or OAB's capital or lending capacity as a result of the offer.


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