MUSCAT: The consortium led by Oman International Development and Investment Co SAOG (Ominvest) has decided to withdraw its offer to acquire 100 per cent of Ahli Bank SAOG's issued share capital.
The withdrawal comes in response to Ahli Bank's recent announcement on July 25 regarding a rights issue of RO 50 million. The consortium was concerned that the rights issue would dilute its ownership stake in Ahli Bank, making the acquisition less appealing.
Additionally, the consortium cited the Central Bank of Oman's (CBO) inability to grant exceptions to the offer under Article (57) of the Banking Law 114/2000 and the provisions of Banking Regulation 40/96. The CBO had expressed previous concerns about the consortium's ability to meet the capital adequacy requirements of the Banking Law.
Meanwhile, in another development related to Ahli Bank, an update has been issued on the takeover offer by Bank Dhofar. In a regulatory filing on Thursday, Bank Dhofar cited Ahli Bank’s announcement of July 26 referencing plans for a potential rights issue.
“Bank Dhofar has received feedback from the Central Bank of Oman on July 17, 2023 expressing that CBO is not in the position to grant approval for the acquisition of shares of Ahli Bank as per the Oman Banking Law and Regulations. Bank Dhofar is in discussions with the CBO and will provide a further update as and when appropriate,” it stated.