MUSCAT: HSBC Oman on Sunday said it would hold preliminary talks with Sohar International Bank after the latter sent a letter of intent proposing a merger of the two banks.
In a disclosure to Muscat Stock Exchange (MSX), HSBC said it had considered the letter of intent it received from Sohar International and has agreed to engage in preliminary discussions to obtain more information on the possible offer.
“If the parties agree to proceed with the merger, it will be subject to various conditions including approval of the relevant regulatory authorities and of the shareholders at the extraordinary general assembly of each bank,” Melika Betley, Chief Executive Officer (CEO) of HSBC Oman said in the disclosure.
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Sohar International which had also proposed a merger proposal with Bank Nizwa said it would update the market about the development. “Sohar International would also like to inform the market that the proposed merger process with Bank Nizwa is in progress as announced earlier,” the statement from the bank said.
Sohar has so far given no details of the terms of its possible offer, saying only that its board had decided to explore the possibility of a cash and shares deal, subject to various approvals.
