Bank Dhofar has officially submitted a revised non-binding merger proposal to Ahli Bank. This comes after the response received from Ahli Bank’s board of directors regarding Bank Dhofar's initial offer made on April 11, 2023.
“Bank Dhofar strongly believes that the merger of the two banks would establish a leading Omani bank with a strong domestic focus and a robust competitive position,” the lender said in a regulatory filing.
“The combined entity would excel across all customer segments, encompassing retail, corporate, and Islamic banking. Moreover, the merger would unlock career development opportunities for employees from both institutions and create value for shareholders by improving the cost of funds and enhancing liquidity within the merged group,” it stated.
The revised non-binding offer came just a day after Ominvest, a leading investment holding firm, announced that it is heading a consortium of firms that will be making a bid for Ahli Bank with the eventual goal to merge the lender with its subsidiary Oman Arab Bank (OAB).
“Bank Dhofar is fully committed to collaborating with (Ahli Bank) to achieve a mutually beneficial agreement for the merger. The board of directors of Bank Dhofar firmly believes that the amalgamation of the two banks would serve the best interests of all stakeholders involved,” it further noted.
Highlighting the merits of the merger proposal, Bank Dhofar pointed out that the combined bank would possess assets exceeding $19 billion, while also establishing a strong presence in all regions of Oman. Furthermore, the combined bank would offer an extensive range of banking products and services, catering to retail, corporate, and Islamic banking customers.
The merger would present opportunities to generate value for shareholders by improving the cost of funds and enhancing liquidity within the merged group, Bank Dhofar further stated.
Ahli Bank ranks as the third-largest bank in Oman in terms of assets. The bank holds a prominent presence in the capital city of Muscat and provides a comprehensive range of banking products and services to retail, corporate, and Islamic banking customers. Ahli Bank is dedicated to delivering exceptional customer service and plays a significant role in contributing to the economic development of Oman.