MUSCAT : The Authority, in a statement issued online, stated that it is following up on the circulated news and affirmed its commitment to uphold legal and legislative procedures and continue taking appropriate measures in this matter.

The FSA has noted the growing discussion on social media about the resolution of the board of directors of Al Madinah Investment Holding Company (SAOG) to change its intention to convert from public joint stock company to closed joint stock company, which was disclosed on Monday September, 2, 2024, after disclosing on November 12, 2023, that its board of directors has resolved to convert the company into closed joint stock company.

“FSA would like to clarify that conversion of a public joint stock company into any other legal form stipulated in the Commercial Companies Law is regulated in the Regulation for Public Joint Stock Companies issued vide decision No. 27/2021. Article 35 of the Regulation for Public Joint Stock Companies provides for a set of documents the company must provide to obtain the FSA’s consent to convert from public joint stock company the foremost is providing a fair price offer by the shareholders who intend to buy the shares prior to completing the conversion procedures,” FSA stated.

Al Madina Investment had disclosed the FSA’s approval for the transformation and the proposed share price on the Muscat Stock Exchange website on July 29, 2024. However, the company sought to limit the purchase offer to shareholders holding fewer than 50,000 shares, a request the FSA deemed illegal. The Authority instructed that the offer must apply to all shareholders wishing to sell, not just a specific category.

“However, the company, in its response to FSA, explained that the board of directors of the company resolved to cease the conversion process. FSA emphasizes the importance of complying with the applicable laws and regulations for all supervised entities and that it will proceed with taking appropriates action in this regard,” the statement concluded.

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