Sohar International Bank, headquartered in Muscat, Oman, has announced its interest in pursuing a possible merger with Ahlibank.
The bank’s board of directors has resolved to submit a letter of intent to Ahlibank’s board, proposing the merger.
The suggested arrangement would involve the transfer of all Ahlibank’s assets and liabilities to Sohar International.
According to a filing with the Muscat Stock Exchange, Ahlibank’s shareholders would receive shares in Sohar International, with the ratio based on the respective book values of both banks as reported in their audited accounts for the year ending 31 December 2024.
Sohar International’s board believes that the merger offers significant opportunities for all stakeholders, including shareholders, employees, and customers.
By merging, the banks would create a larger, “more diversified” entity with enhanced capabilities.
The merger is expected to provide a number of benefits, such as strengthening the combined institution’s competitive position within Oman’s banking industry.
It would also broaden the range of products and services offered to clients.
Moreover, the merger is seen as an opportunity to achieve revenue, cost, and potential growth synergies.
The merger proposal is contingent upon satisfactory due diligence, approval from the boards and shareholders of both banks, and regulatory authorisation.
In a statement, Sohar International Bank said: “The board of directors of Sohar International is confident that the proposed combination provides a singular opportunity to build a larger, more diverse and competitive bank from the existing successful standalone franchises of both banks, enabling the merged entity to compete strongly and to pursue business opportunities for the clients of both banks in the Sultanate of Oman and overseas.”
