Omani Merger Deal Set to Create Nation’s Second Biggest Bankby
Each Bank Dhofar share will be exchanged for 1.29 shares of Bank Sohar if the merger goes ahead, Bank Sohar said in a statement today. Bank Sohar gained 3.4 percent to 0.18 riyals at 2:07 p.m. in Muscat, while Bank Dhofar rose 0.4 percent to 0.25 riyals.
The two banks have been exploring a possible merger since July 2013. A combination of the lenders would create Oman’s second-largest bank, behind Bank Muscat which has assets of $32 billion. Bank Sohar’s acting chief executive officer, Rashad Ali Al-Musafir resigned earlier this month citing personal reasons, according to a statement published on the stock exchange website.
Activity in Oman has been picking up amid the slump in oil prices. The government is issuing a dollar bond and state-owned Petroleum Development Oman is raising a $3.4 billion loan backed by oil sales. The government is also looking to sell a privately-placed sukuk, two people with knowledge of the matter said last month.