(MENAFN- Muscat Daily) Muscat- National Finance Company on Sunday said its board of directors agreed to offer a cash buyout to the shareholders of Oman Orix Leasing Company.
National Finance's proposed cash offer equates to a price of 1.20x the ending book value of Oman Orix as at March 31, 2017 (the cut-off date), the company said in a filing to the Muscat Securities Market.
'National Finance will be prepared to make price adjustments related to movements in Oman Orix's financials between the cut-off date and the actual transaction date. In this regard, an offer letter has been sent to Oman Orix for their due consideration', National Finance said.
It said the proposed cash offer is subject to the satisfactory financial and legal due diligence of Oman Orix, approvals from the shareholders of both National Finance and Oman Orix, and approvals from the relevant regulatory authorities in Oman.
In November last year, National Finance and Oman Orix had jointly appointed an independent consultant to study the rational for a potential merger between the two non-banking finance companies. National Finance on April 16 said that the appointed consultant concluded their work on the merger rationale. Following the consultant's observations on the viability of a merger, the respective boards of both companies had asked the consultant to carry out the valuation of both the companies.
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