Sohar International eyes merger with Ahlibank

Zawya

08-04-2025

Muscat: Sohar International Bank on Monday announced its intention to explore a potential merger with Ahlibank.
In a meeting held by its board of directors, Sohar International resolved to send a letter of intent to the board of Ahlibank, proposing a merger between the two banks.
The letter of intent outlines a proposed merger by incorporation, whereby all assets and liabilities of Ahlibank would be transferred to Sohar International upon completion of the transaction, according to a disclosure submitted to the Muscat Stock Exchange.
As per the disclosure, shareholders of Ahlibank would receive share consideration in Sohar International, based on a proposed share swap ratio determined by the respective book values of Ahlibank and Sohar International, as reported in the audited financial statements for the financial year ended December 31, 2024.
The board of Sohar International believes that the merger 'represents a compelling opportunity for the shareholders, employees, customers and broader stakeholders of both banks, through the creation of a larger, more diversified and fully scaled institution'.
Sohar International added that its board considers the proposed merger with Ahlibank as beneficial in several respects: (i) Enhancing the domestic competitive positioning of the combined entity; (ii) Expanding the product and service offerings of both banks; (iii) Creating opportunities for realising revenue, cost, and growth synergies; and (iv) Improving liquidity and market presence for shareholders of both institutions.
'The board of directors of Sohar International is confident that the proposed combination presents a unique opportunity to create a larger, more diverse and competitive bank by integrating the existing successful standalone franchises of both entities. This would enable the merged institution to compete more effectively and pursue business opportunities for clients both in Oman and internationally,' the bank said.
The proposed merger and its terms, as outlined in the letter of intent, are subject to satisfactory due diligence, necessary corporate approvals from the boards and shareholders of both banks, and regulatory consent.
Sohar International affirmed that it will make timely market disclosures regarding any material developments in line with regulatory requirements.
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