Muscat: Oman Arab Bank (OAB) and Alizz Islamic Bank (AIB) announced the signing of an agreement for the overall structure of the potential merger between the two banks.
This step will pave the way for the successful finalisation of two-years of negotiations between both parties.
The agreement was signed by Rashad Mohammad al Zubair, Chairman of OAB, and Saleh Nasser al Araimi, Chairman of AIB, on behalf of both respective banks.
The potential merger will witness the establishment of a major banking entity that will deliver world-class conventional and Islamic banking services and will be the first of its kind in the local banking sector.
The agreement covered the overall structures and procedures that will be taken as part of the merger process. Oman Arab Bank agreed to submit an offer to the shareholders of Alizz Islamic Bank to acquire all shares, with the aim to make Alizz Islamic Bank a wholly-owned Islamic banking subsidiary and convert Alizz Islamic Bank into a closed joint-stock company (SAOC).
Once this step is completed, the business of Al Yusr, the Islamic Banking window of Oman Arab Bank, will be integrated with Alizz Islamic Bank SAOC, creating a larger full-fledged and licensed Islamic bank. Following this, shares of OAB will be listed at the Muscat Securities Market (MSM), converting it into a public joint-stock company.
Upon completion of the merger, Oman Arab Bank will continue its conventional banking business and operations, while Alizz Islamic Bank will remain fully Shari’a-compliant and continue to offer Islamic Banking products and services as a full-fledged Islamic bank. –ONA