Sohar International update on possible merger with HSBC Bank Oman

Muscat: Sohar International issues a Disclosure Update regarding the possible merger with HSBC Bank Oman SAOG.

In a disclosure to the muscat stock exchange Sohar International said: “Further to our disclosure on 16th June 2022 on the possible merger with HSBC Bank Oman SAOG (HSBC Oman), Sohar International Bank SAOG (Sohar International) would like to disclose that it has received HSBC Oman’s acceptance to enter into a non-binding memorandum of understanding with Sohar International, dated 25th July 2022, on proceeding to exclusive discussions in relation to the possible merger between the two entities, on the basis of a merger by incorporation whereby HSBC Oman would be dissolved and its shareholders offered a consideration valuing HSBC Oman at 1.0x book value, with such consideration consisting of shares of Sohar International with the option for the shareholders of HSBC Oman to elect to receive the consideration in cash, provided that the maximum cash consideration payable by Sohar International to the shareholders of HSBC Oman that elect to receive cash consideration shall not exceed 70% of the total consideration payable by Sohar International.

The shares of Sohar International that would form part of the consideration to the shareholders of HSBC Oman would value Sohar International at 1.0x book value. The respective book value of each bank would be calculated at a later date.

The ongoing exclusive discussions, negotiations and the potential merger shall remain subject to due diligence and entry into definitive agreements, in addition to obtaining final approvals from the respective Boards, Regulators and Shareholders. 

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