Oman & Emirates Investment Holding Company and The Financial Corporation (Fincorp) have agreed to start discussions for a potential merger between the two financial institutions.
The board of directors of Oman & Emirates Investment Holding on Monday sent a potential merger proposition to the board of Fincorp. The company received a response from Fincorp’s board of directors expressing their agreement to conduct discussions to assess mutual benefits, RaffyKozadijan, acting CEO of Oman & Emirates Investment Holding, said in a filing to the Muscat Securities Market (MSM) on Tuesday.
The shares of Oman & Emirates Investment Holding jumped nearly 8 per cent on Tuesday.
In a separate disclosure to the MSM, Nabil al Balushi, acting chief executive officer of Fincorp, said, “During the meeting held on Monday, the board of Fincorp considered a proposition received from Oman & Emirates Investment Holding for a potential merger and agreed to conduct discussions to assess mutual benefits.”
Fincorp’s principal activities are brokerage, asset management, trading in securities and corporate finance. Oman & Emirates Investment Holding is already a majority shareholder in Fincorp with a 51 per cent equity stake. Oman Investment & Finance Company (OIFC), as the second biggest shareholder, owns 22 per cent stake in Fincorp, as per Fincorp’s financial statement submitted to the MSM on Tuesday.
Fincorp reported a net profit of RO189,638 for the nine months ended September 30, 2019 compared to a net profit of RO27,144 for the corresponding period of 2018.
Oman & Emirates Investment Holding Company is engaged in investment activities and related services in Oman. The company is also licensed to carry out financial investment activities through its branch in the UAE by the Central Bank of UAE.
