Bank Nizwa has announced a proposed merger with Alizz Islamic Bank, positioning Oman International Development and Investment Company (Ominvest) as a strategic stakeholder.
The bank intends to offer an indicative valuation of 1.2 times book value and a 20% stake to Ominvest through the subscription of new shares, with the proceeds earmarked to finance the merger, citing a recent bourse filing.
Financing for the acquisition will be secured through the issuance of an AT1 perpetual sukuk.
However, the merger is currently non-binding and contingent upon regulatory approvals.
Alizz Islamic Bank operates as a wholly-owned subsidiary of Oman Arab Bank since being acquired in 2020.
Ominvest is a significant shareholder in Oman Arab Bank (30.99%): the parent of Alizz Islamic Bank. Ominvest is set to gain up to 20% equity in Bank Nizwa following the merger.
The merger is a pivotal move in the rapid increase in Islamic banking in the Sultanate.
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