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Bankmuscat Organizes Presentation to the
Shareholders of Alliance Housing Bank
March 22, 2007: In what perhaps can be best
described as a path breaking initiative,
BankMuscat the nation’s leading bank, today
successfully organized a presentation to the
shareholders of Alliance Housing Bank.
BankMuscat, it may be recalled, had made an open
offer to the Board of Directors of Alliance
Housing Bank on May 8, which was declined two
days after, on account of AHB evaluating various
strategic options and offerings at this point in
time. However, no firm proposal has been tabled
by the Bank to its stakeholders to date.
(From L to
R): Mr. K. Gopakumar, General Manager-Wholesale
Banking,
Mr. Ahmed Al Abri, Chief Operating Officer, Mr.
J. Sunder George, Deputy Chief Executive, Mr.
Abdullah Al Hinai, Assistant General Manager –
Wholesale Banking
Sharing the
rationale behind the meeting, the deputy chief
executive of BankMuscat said:
“Not having heard of any firm alternative
offer being received by Alliance Housing Bank,
we decided to meet the shareholders of the bank
directly, so as to share the rationale behind
our offer directly, as we are firmly of the
opinion that our bid is generous, fair,
transparent and most importantly, unconditional
except for shareholder and regulatory
approvals.”
Over 150 people attended the session this
morning, which was held at the Businessmen’s
Hall at the Muscat Securities Market, including
senior representatives from several of AHB's
leading shareholders, analysts and members of
brokerage houses from across the country.
Lauding the role of the regulatory authorities
in permitting such a meeting to be held, the
chief operating officer of BankMuscat said:
“This, perhaps, is the first time in the
history of the capital markets in Oman that a
meeting of shareholders of one organization has
been convened at the request of a another
organisation. This no doubt is a sign of the
maturity of the capital markets in Oman, and the
wisdom of the regulatory authorities who believe
that the shareholders of an organization have a
crucial role to play in the future of any
organization.”
Taking this point even further, the BankMuscat
officials shared that the purpose of the meeting
was not in anyway to try to force a decision on
the shareholders of AHB, but was try to provide
them with all the necessary inputs to reach an
‘informed decision’. What they also shared in no
uncertain terms is that the Bank had no plans to
increase / revise its offer at this point in
time.
The Alliance
Housing Bank investors at the meeting
In keeping
with Oman’s Commercial Companies Law No. 4/1974
(Article 124), if 25% of the shareholders of AHB
are in favour of the offer made by BankMuscat to
AHB, they could request the Chairman of the
Board to convene an extraordinary general
meeting to seek an overall approval on the
merger proposal from the shareholders. 75% of
the total shareholding of the Bank would have to
be represented at this meeting for the EGM to be
successfully convened. And if 75% of those who
attend the EGM are in favour of the offer, AHB
would have to go for the merger.
With assets worth over USD 8.5 billion,
BankMuscat (SAOG) has established a successful
track record of mergers and acquisitions both in
Oman and overseas. The most notable amongst
these are the acquisitions of Al Bank Al Ahli Al
Omani (FY 1993), Commercial Bank of Oman (FY
2000), Industrial Bank of Oman (FY 2000), Al
Ahlia Portfolio Securities (FY 2002), ABN Amro’s
Bahrain Operations (FY 2002), Centurion Bank,
India (FY 2003) and Mangal Keshav Holdings,
India (FY 2007). BankMuscat is focused on
becoming one of the foremost banks across the
region and having over 1 million satisfied
customers by continuous enhancement of
stakeholder value by the year 2010. |
