CBO nod for Ominvest-ONIC merger

02/07/2015 03:51 AST

The Central Bank of Oman (CBO) has approved the merger of Oman International Development and Investment Company SAOG (Ominvest) and Oman National Investment Corporation Holding SAOG (ONIC), according to Muscat Securities Market (MSM) yesterday.

There have been previous disclosures regarding the merger between Ominvest and ONIC. Analysts state that the merger will see a robust entity. "We would need to see the implementation of post-merger strategy and the eventual value unlocking prospects going forward.

With this background we remain positive on the upcoming merger, which would create a robust entity," the Gulf Bader Capital Market (GBCM) said in its research note.

Earlier it was reported that shareholders and boards of both companies had already approved the merger, which will see ONIC Holding shareholders receive 1.052 Ominvest shares for every share held. When the shareholders of Ominvest approved the merger proposal put forward by ONIC Holding it was also decided to increase the capital base.

Ominvest had said in a separate filing that its shareholders had backed increasing its authorised capital to RO 90 million from RO 50 million, and its issued capital to RO 55.28 million from RO 37.04 million, to help facilitate the merger.

ONIC said that its shareholders at an Extraordinary General Meeting (EGM) approved the dissolution of the company and its merger by incorporation into Ominvest.

It was in May that boards of directors of Ominvest and ONIC had approved the proposed merger of the two entities.

As per the consultants' valuation and also agreed by both the managements, in the combined entity, the shareholders of Ominvest would have 67 per cent share and ONIC shareholders would have 33 per cent.

Once the assets and liabilities of ONIC would be transferred to Ominvest, the former would cease to exist and listed entity on MSM will be Ominvest.

Oman Daily Observer