The merger is expected to complete in H2 2023

HSBC Bank Oman's board of directors has approved entering into a binding merger agreement with Sohar International Bank as the two Muscat based lenders take further steps towards a possible merger.

In separate statements to the Muscat Stock Exchange, the lenders said following the agreement, they would merge and all assets and liabilities of HSBC Bank Oman will be transferred to Sohar in a cash-and-shares deal.

HSBC Oman will be dissolved and its shares cancelled. Its shareholders will be offered a consideration valuing HSBC Oman at 1.0X book value, and either Sohar International shares or a consideration in cash, not exceeding 70% of the total consideration.

Sohar shares that form a part of the consideration to HSBC Oman will be valued at 1.0X book value, which will be calculated for both lenders at a later date.

The merger, subject to regulatory and shareholder approvals, is expected to complete in H2 2023.

HSBC Oman's market capitalisation was $806 million as of Tuesday closing, based on Refinitiv Eikon data. Sohar International Bank’s market capitalisation was $1.22 billion.

zawya