(MENAFN- Muscat Daily) Muscat- The Central Bank of Oman (CBO) has given in-principle approval for the proposed merger between National Finance Co and Oman Orix Leasing Co, both companies announced on Monday.
'We have received in-principle approval from the CBO subject to shareholders' approval and final approval from the regulatory authorities', National Finance said in a disclosure filed with the Muscat Securities Market (MSM).
Oman Orix Leasing also confirmed that it received a letter from the CBO with respect to the merger proposal with National Finance.
'The CBO has given in-principle approval for the proposed merger subject to regulatory approvals', the company said.
Earlier in May, National Finance board had decided to convene an extraordinary general meeting (EGM) to approve the merger by incorporation of Oman Orix Leasing into National Finance. National Finance offered a cash buyout equating to a price of 1.2 multiples of the book value of Oman Orix Leasing as of March 31, 2017 (the cut-off date) to the shareholders of Oman Orix Leasing.
National Finance had also said that it will make price adjustments related to movements in Oman Orix Leasing's financials between the cut-off date and the actual merger date.
The company has not yet announced the date of its EGM.
National Finance will also seek shareholders' approval to increase the authorised capital of the company from RO30mn to RO75mn.
National Finance's net investment in financing activities reached to RO191.26mn as on June 30, 2017, while its total assets stood at RO199.32mn. Oman Orix Leasing's net investment in finance leases reached to RO187.87mn as on June 30, 2017, while its total assets stood at RO194.03mn.
MENAFN1408201701410000ID1095734679
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.