Deal set to create Oman’s second biggest bank

Dubai: Oman’s Bank Sohar reached an agreement with Bank Dhofar on the terms of a proposed merger that would create a bank with combined assets of almost $16 billion (Dh58.76 billion).

Each Bank Dhofar share will be exchanged for 1.29 shares of Bank Sohar if the merger goes ahead, Bank Sohar said in a statement on Wednesday. Bank Sohar gained 3.4 per cent to 0.18 riyals at 2.07pm in Muscat, while Bank Dhofar rose 0.4 per cent to 0.25 riyals (Dh2.38).

The two banks have been exploring a possible merger since July 2013. A combination of the lenders would create Oman’s second-largest bank, behind Bank Muscat which has assets of $32 billion.

Bank Sohar’s acting chief executive officer, Rashad Ali Al Musafir resigned earlier this month citing personal reasons, according to a statement published on the stock exchange website.