Oman’s Bank Nizwa has unveiled plans to merge with Alizz Islamic Bank in a proposed deal that would also see investment company Ominvest become a strategic shareholder in the Islamic lender.
Under the preliminary proposal, Ominvest could acquire as much as a 20% stake in Bank Nizwa by subscribing to newly issued shares. The shares would be offered at an indicative valuation of 1.2 times the bank’s book value, with the proceeds helping fund the proposed merger.
Bank Nizwa also plans to raise additional financing through an AT1 perpetual sukuk, although the size of the issuance has not yet been disclosed.
The companies have not provided a transaction value or details of the amount Ominvest intends to invest. The merger proposal remains non-binding and will require approval from the relevant regulatory authorities.
Alizz Islamic Bank became a wholly owned subsidiary of Oman Arab Bank after the latter completed its takeover of the Islamic lender in 2020.
Ominvest already holds a significant position in Oman Arab Bank, with a 30.99% stake, according to LSEG data.
