HSBC Bank Oman and Sohar International said on Wednesday they have entered into a binding merger agreement.
The two banks said in separate regulatory announcements that all of HSBC Oman’s assets and liabilities will be transferred to Sohar International Bank. They added that HSBC Oman will be dissolved as a legal entity upon the completion of the merger and its shares will be cancelled.
In its filing to the Capital Market Authority (CMA), HSBC Oman said: “The shareholders of HSBC Oman will be offered consideration valuing HSBC Oman at 1.0x book value, with such consideration consisting of shares of Sohar International with the option for the shareholders of HSBC Oman to elect to receive the consideration in cash, provided that the maximum cash consideration payable by Sohar International to the shareholders of HSBC Oman that elect to receive cash consideration shall not exceed 70 per cent of the total consideration payable by Sohar International.”
It further added: “The respective book value of each bank shall be calculated at a later date (which is currently expected at the end of the first quarter of 2023) before the banks invite their shareholders to vote on the merger in an EGM.”
