(MENAFN- Muscat Daily) Muscat- National Finance Co's board of directors decided to convene an extraordinary general meeting (EGM) to approve the merger by incorporation of Oman Orix Leasing Co into National Finance.
The merger is proposed to be by way of cash buyout equating to a price of 1.20x the ending book value of Oman Orix as of March 31, 2017 (the cut-off date) to the shareholders of Oman Orix.
National Finance will make price adjustments related to movements in Oman Orix's financials between the cut-off date and the actual merger date, the company said in a filing to the Muscat Securities Market (MSM) on Tuesday. 'This is subject to: Satisfactory financial and legal due diligence of Oman Orix, approval from shareholders of Oman Orix and approvals from the relevant regulatory authorities', National Finance said.
However, it has not yet announced the date of the EGM. National Finance will also seek shareholders' approval to increase the authorised capital of the company from RO30mn to RO75mn.
The company will also seek shareholders' and regulatory approvals for a rights issue of RO27.6mn by offering 217.6mn shares to the existing shareholders at a price of 127bz per share (including 2bz per share as issue expenses).
National Finance also plans to issue perpetual bonds worth RO18.2mn through a private offer, subject to shareholders and regulatory approvals.
National Finance had announced a cash buyout offer to the shareholders of Oman Orix on May 14, after which Oman Orix board agreed in-principle to the offer.
Shares of Oman Orix have been continuously surging on the MSM after the company's board received a cash buyout offer from National Finance. Oman Orix shares jumped 3.21 per cent on Tuesday.
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