National Bank of Oman has put forth an acquisition proposal to acquire domestic lender United Finance, which offers loans and leasing services as well as corporate deposits.
According to Thomson Reuters data, National Bank of Oman has a market capitalization of $1.08bn.
United Finance that has a market capitalization of $99.3m said that the new offer made by National Bank of Oman will be discussed by its board.
A further statement will be announced by United Finance once the situation improves.
In February, the company had agreed in principle to merge with Bank Nizwa with further plans to consider the proposal when its board meets for the next time, the news agency said.
United Finance noted that the proposed deal would take place upon receiving approval of its directors, shareholders as well as the regulators. The parties have not disclosed the transaction value.
National Bank of Oman was founded in the year 1973 and reported a net worth of RO220.5m, as of 31 December 2007.
With a paid up capital of RO92m ($239m), the bank runs 54 branches across Oman but has its headquarters based in Muscat. National Bank of Oman also runs 128 ATMs in addition to five branches in Egypt and one in the UAE.
A 34.9% share in the bank is held by a private sector investor and 27% of its equity is controlled by public sector agencies, while the remaining equity is held by Oman-based private sector investors.
Image: The National Bank of Oman (left) on Muscat Bank Street. Photo: courtesy of Mary Paulose