Bank Dhofar SAOG announced on Thursday that it has decided to withdraw its takeover offer to acquire the entire issued share capital of Ahli Bank SAOG (ABO), following discussions with the Central Bank of Oman (CBO).
The announcement, via a regulatory filing, comes roughly a week after Oman International Development and Investment Co SAOG (Ominvest), which was also a contender for Ahli Bank, had decided to withdraw its offer to acquire 100 per cent of Ahli Bank SAOG's issued share capital.
That withdrawal came in response to Ahli Bank's recent announcement on July 25 regarding a rights issue of RO 50 million. The consortium said it was concerned that the rights issue would dilute its ownership stake in Ahli Bank, making the acquisition less appealing.
Additionally, the consortium cited the Central Bank of Oman's (CBO) inability to grant exceptions to the offer under Article (57) of the Banking Law 114/2000 and the provisions of Banking Regulation 40/96. The CBO had expressed previous concerns about the consortium's ability to meet the capital adequacy requirements of the Banking Law.
While also referencing Ahli Bank’s rights issue proposal, Bank Dhofar also notes that it had received feedback from the Central Bank expressing its inability to grant approval for the acquisition of shares of Ahli Bank as per the Oman Banking Law and Regulations.
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