(MENAFN- Muscat Daily) BankDhofar and Bank Sohar have signed a non-binding memorandum of understanding (MoU) and agreed to proceed with due diligence on their proposed merger.
'With reference to our disclosure dated June 2 2014 on the proposed merger with Bank Sohar BankDhofar announces it has entered into a non-binding MoU with Bank Sohar and that both parties have agreed to proceed with due diligence process subject to the regulatory approvals' BankDhofar said in a filing with the Muscat Securities Market on Wednesday. Bank Sohar also confirmed the same.
'We shall keep shareholders apprised of developments in this regard through suitable disclosures in line with the disclosure requirements" both added in their separate disclosures.
Last June BankDhofar announced the completion of the preliminary study by a specialist company on the merger.
BankDhofar had then proposed a preliminary swap ratio subject to the completion of due diligence and necessary approvals. The bank had in July of 2013 first expressed its interest to commence discussion with Bank Sohar to explore the possibility of merger.
At the end of the first quarter of 2015 BankDhofar's total assets stood at RO3.29bn up 19.4 per cent from RO2.75bn a year earlier while Bank Sohar's total assets were nearly RO2bn.
In another move towards consolidation in Oman's financial sector Al Omaniya Financial Services submitted its offer for a 100 per cent acquisition of United Finance Co on Tuesday.
Meanwhile Oman International Development and Investment Co (Ominvest) announced on Wednesday it had received approval from the Central Bank of Oman on its merger with ONIC Holding.
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