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Oman Arab Bank (OAB) and Alizz Islamic Bank (AIB) has signed a deal for the overall structure of the potential merger between the two banks.
The agreement was signed by Rashad Mohammad Al Zubair, Chairman of OAB and Saleh Nasser Al Araimi, Chairman of AIB.
According to a statement issued to the Muscat Securities Market, OAB has agreed to submit an offer to the shareholders of AIB to acquire the entire issued shares in order to make AIB a wholly-owned Islamic banking subsidiary of OAB and convert AIB into a closed joint-stock company (SAOC).
Once this step is completed, the assets and liabilities of Al Yusr, the Islamic Banking window of OAB, will be integrated with AIB, creating a larger Islamic bank. Following this, shares of OAB will be listed at the Muscat Securities Market (MSM), converting it into a public joint-stock company.
After the merger between the banks is completed, OAB will continue its conventional banking business and operations, while AIB will continue to operate as an Islamic bank, as a wholly-owned subsidiary of OAB.
"The Islamic banking sector in the Sultanate is one of the most promising sectors and through this merger with OAB, AIB will have the necessary capital to meet the regulatory requirements and enhanced abilities to finance new projects that contribute greatly to the local economy," Times of Oman quoted Saleh Al Araimi, Chairman of AIB as saying.
"Through the transfer of Al Yusr to AIB, the branch network will grow and complement our strong digital platforms as we continue to grow our presence. This will, in turn, enable us to better serve our existing customers and attract new customers, thanks to our comprehensive suite of Islamic Banking products and services," he added.
(Writing by Seban Scaria, editing by Daniel Luiz)
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