Ahli Bank accepts merger proposal from Sohar International; both banks enter exclusivity period

MUSCAT : The acceptance follows a meeting held by the Board of Directors of Ahli Bank on April 10, 2025, where the terms and strategic merits of the proposal were thoroughly reviewed. The Board resolved to proceed with the initial execution of the letter of intent, which outlines the framework and conditions for the proposed merger.

“The merger structure will be by way of incorporation, pursuant to which all assets and liabilities of Ahli Bank would be transferred to Sohar International by operation of law on the effective date of the merger,” stated the Ahli Bank disclosure.

According to the agreed terms, shareholders of Ahli Bank will be compensated through a share swap, with the ratio based on the respective book values of both banks as reported in their audited financial statements for the year ending December 31, 2024.

As part of the agreement, both banks have entered into an exclusivity period, during which neither party will consider or enter into discussions regarding any other merger, acquisition, or similar transactions without the other’s consent. This period is intended to allow both institutions to focus on the necessary workstreams, including due diligence, regulatory coordination, and strategic alignment.

In a corresponding disclosure through the Muscat Stock Exchange, Sohar International confirmed receipt of Ahli Bank’s acceptance of the proposal and welcomed the positive response, noting the compelling strategic rationale behind the merger.

The move, expected to create a banking entity with approximately RO 11.1 billion ($28.84 billion) in assets, is seen as a step toward creating a stronger, more resilient financial entity capable of delivering greater value to shareholders and supporting national economic objectives. Further announcements are expected as both banks progress through the necessary regulatory and shareholder approval processes.

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