Consortium to make bid for Oman’s Ahli Bank  

Ahli Bank

Oman International Development and Investment Company (Ominvest) is heading a consortium to acquire Ahli Bank in Oman.

The consortium will make a cash offer of 185 baisas ($0.48) per share, representing a 28 percent premium over the bank’s average one-year market price of 144 baisas, the investment firm said in a statement to the Muscat Stock Exchange.

“We believe the offer is attractive,” it stated.

Ominvest has categorised the Ahli Bank shareholders into three categories: strategic long-term investors holding more than 25 percent stake, who provide strategic direction and assistance in the transformation of Ahli Bank; significant financial investors, who hold between 10 and 25 percent stake and have significant influence over the bank and participate in its policy-making process, and other investors, holding less than a 10 percent stake.

If the consortium’s offer is accepted, strategic long-term investors will receive the base offer price plus 15 baisas, while significant financial investors will receive the base offer price plus seven baisas. Other investors will receive the base offer price.

The consortium members already have a substantial stake in Oman Arab Bank (OAB) and the acquisition of Ahli Bank will further strengthen its potential future merger with OAB, the statement said.

The proposed offer will be funded by the consortium members from their own funding sources.

In its most recent daily market analysis on May 17, Kuwait investment management firm Kamco Invest reported that the finance sector in Oman had risen 0.4 percent month-on-month, with Oman Arab Bank and Ahi Bank among the top three performers, growing 9.4 percent and 4 percent over the previous 24 hours.

Overall, the Muscat Stock Exchange is down three percent so far this year, compared to growth of 17.6 percent in 2022.