Bank Dhofar Revised Non-Binding Merger Proposal with Ahli Bank

Bank Dhofar Revised Non-Binding Merger Proposal with Ahli Bank

In a disclosure to muscat stock exchange the company said: “Further to our communication on 10 April 2023 announcing the submission of a non-binding offer to the board of Ahli Bank SAOG (“ABO”), and having considered the board of directors of ABO’s response on the same dated 11 April 2023, Bank Dhofar SAOG (“Bank Dhofar”) resolved to submit a revised non-binding offer to the board of directors of ABO on 26 April 2023 (the “Revised Offer”).

We believe that a combination of Bank Dhofar and ABO is a compelling opportunity for ABO shareholders to:

Create a leading domestically-focussed Omani bank with a robust competitive position, well placed to serve the entirety of the market with leading market positions across a number of customer segments;

Combine the banks’ highly complementary activities and expertise across retail, corporate and Islamic banking for the benefit of the combined group and its customers;

Provide career development opportunities for both banks’ employees;

Provide opportunities to create value for both sets of shareholders, notably through an improvement in the combined group’s cost of funds; and

provide enhanced liquidity for both sets of shareholders.

We also note Oman International Development and Investment Co. SAOG (“Ominvest”)’s disclosure dated 15 May 2023 outlining its intention to make an offer for the entire issued share capital of ABO as part of a consortium including Arab Bank plc and other investors (“the Consortium”). Our commitment to proceed with our Revised Offer remains unchanged and we look forward to further engagement with the ABO board.

Any transaction, should it proceed, is subject to obtaining approvals from the relevant regulators and respective boards of directors and shareholders of Bank Dhofar and ABO.

Further announcement will be made if and when appropriate.”