United Finance on Sunday said its board met to discuss the letter received from alizz islamic bank.
‘The board approved engaging in a dialogue with alizz islamic bank to explore the possibility of merger, subject to it being on a full cash acquisition basis. This is subject to requisite regulatory and other approvals’, United Finance said in a filing to the Muscat Securities Market.
Further disclosure concerning this matter will be made as and when there are developments to report, the company added.
Before alizz islamic bank’s interest in United Finance, Bank Nizwa in 2015 had proposed a strategic merger with United Finance, which was followed by rival offers from Al Omaniya Financial Services Co and National Bank of Oman (NBO).
However, following United Finance’s invitation to all three suitors to participate in a bidding process in 2015, Bank Nizwa and NBO withdrew their proposals. And after months of discussions on a proposed merger/acquisition between United Finance and Al Omaniya, both the non-banking finance companies had also decided not to pursue the transaction any further.
United Finance’s total assets stood at RO117.82mn as of March 31, 2017 while its loan portfolio was at RO112.85mn. The company’s net profit declined to RO757,000 in the first quarter of this year compared with RO1.15mn in the corresponding period of last year.
Alizz islamic bank’s total assets stood at RO463.54mn as of March 31, 2017. The bank’s financing receivables reached to RO361.24mn as of March 31, 2017 while deposits grew to RO374.04mn.