Ubhar Capital SAOC (U Capital) and Gulf investment Service (GIS) have entered into a definitive agreement for Ubhar Capital to acquire 100 percent of Gulf Baader Capital Markets (GBCM).
Post the acquisition, both entities will be merged to operate as Ubhar Capital. The transaction has been approved by the Board of Directors of both U Capital and GBCM and is subject to approval from the Capital Market Authority (CMA).
The combination will bring together two leading investment services firms in Oman with combined assets under management and custody assets of $1.3 billion and brokerage market share of 32 per cent in the Muscat Securities Market as of February 2020. The merged entity will continue to focus on four business segments of Asset Management, Corporate Finance, Brokerage and Custody Services covering local and regional markets.
The highly complementary investment banking capabilities of Ubhar Capital and GBCM will strengthen the combined organization’s ability to provide services to an expanded number of clients in Oman, the region and around the globe. Clients of U Capital and GBCM alike should benefit from a richer product offering, expanded resources, more expertise and greater scale of the combined firm. This will improve the competitive position of the company in all business areas.
“This acquisition underscores our vision for Ubhar Capital to become a premier investment bank out of Oman – with global reach and capabilities. The acquisition will also benefit from significant synergies and will create growth opportunities for Omani nationals. I would like to thank both the CMA and MSM for their continued support during this transaction,” said Abdulaziz al Balushi, Chairman of Ubhar Capital .
“Ubhar Capital has a well-defined strategy to develop its financial services to better serve its clients and help develop the Omani Capital Market. The acquisition of Gulf Baader Capital Markets by Ubhar Capital will create a new market leader that has the financial strength and the knowledge base to greatly benefit its clients and develop its staff. The new entity will have the best of both companies’ professional skills and knowledge to capitalized on future opportunities,” Hatim al Shanfari, Chairman, Gulf Investment Services Holding
“I am immensely proud of the Ubhar Capital team and our achievements. This transaction will further solidify our position as a leading player in the investment banking sector in Oman. We will ensure smooth integration both in terms of personnel and systems in order to have seamless transition of Gulf Baader Capital Markets clients to Ubhar Capital. The merged entity under the Ubhar Capital umbrella will create a truly exciting and comprehensive investment banking proposition and will enable our collective team to serve a far wider spectrum of clients, backed by utilizing our qualified Omani human capital,” said Lo’ai Bataineh, Chief Executive Officer of Ubhar Capital SAOC.
“By joining the Ubhar Capital family, we will be able to take our combined offering to the next level and deliver an even more comprehensive suite of investment and brokerage capabilities,” said Talal al Balushi, Head of Brokerage at GBCM.