MUSCAT — Oman International Development & Investment S.A.O.G (Ominvest) has announced a revised offer to acquire a substantial stake in Ahli Bank, one of Oman’s prominent financial institutions. In a statement released on Wednesday, Ominvest stated that the consortium it leads intends to make an offer to acquire up to 75% of the lender, rather than the entire issued share capital, as previously proposed.
Under the revised offer, the consortium will present an increased cash offer of 200 baiza ($0.52) per share to all shareholders of Ahli Bank. This adjustment comes after Ominvest had initially suggested a base price cash offer of 185 baiza, accompanied by varying premiums for long-term, financial, and other investors. The updated proposal demonstrates Ominvest’s determination to secure a more substantial stake in Ahli Bank.
Presently, Ominvest holds an 8.68% shareholding in Ahli Bank through its fully-owned subsidiary. The consortium’s goal is to acquire up to 66.32% of the bank’s issued share capital, ultimately aiming to achieve a 75% ownership stake. It is important to note that Ahli Bank will retain a minimum free float of 25% to ensure a balanced and diverse shareholder base.
In a strategic move, Ominvest has committed to paying Ahli United Bank, a key long-term investor in Ahli Bank, the full value of 200 baiza per share for their 35% shareholding. This payment will amount to a substantial sum of 136.5 Omani rials ($355 million) and further solidifies Ominvest’s position in the acquisition process.
Shareholders of Ahli Bank will be given the flexibility to choose their consideration, with a minimum of 55.6% offered in cash. This provision allows shareholders to determine their preferred mix of cash and shares as part of the acquisition deal.
The revised offer from Ominvest showcases its eagerness to expand its presence in the banking sector and capitalize on the potential growth opportunities presented by Ahli Bank. This acquisition, if successful, would significantly enhance Ominvest’s influence in Oman’s financial landscape.
This news comes as Oman’s banking industry continues to witness robust activity, with financial institutions exploring avenues for growth and consolidation. The revised offer by Ominvest signals a dynamic and evolving landscape within Oman’s banking sector, setting the stage for a potentially transformative deal that could reshape the country’s financial landscape.
