national finance offers cash buyout to oman orix shareholders for merger
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

National Finance offers 'cash buyout' to Oman Orix shareholders for merger

Arab Today, arab today

Arab Today, arab today National Finance offers 'cash buyout' to Oman Orix shareholders for merger

National Finance Company will offer a cash buyout to shareholders of Oman Orix Leasing Company, as part of
Muscat - Arab today

National Finance Company will offer a cash buyout to shareholders of Oman Orix Leasing Company, as part of the merger between the two leading leasing firms in the Sultanate.

National Finance’s proposed cash offer is equivalent to 1.2 multiples of the book value of Oman Orix at the end of March 2017, which is equivalent to approximately 173 baisas per share. This is against Oman Orix’s latest quoted price of 119 baisas per share on the Muscat bourse. Oman Orix has a net worth or total equity of OMR37.8 million, while its paid-up capital was OMR26.11 million by the end of March 2017. 

“National Finance will be prepared to make price adjustments related to movements in Oman Orix’s financials between the cut-off date and the actual transaction date. In this regard, an offer letter has been sent to Oman Orix for their due consideration,” stated Robert Pancras, chief executive officer of National Finance, in a disclosure letter posted on the MSM website.

However, the proposed cash offer is subject to satisfactory financial and legal due diligence of Oman Orix, approvals from the shareholders of both leasing firms and approvals from regulatory authorities in Oman.

The merger plan follows a study conducted by Deloitte, an independent consultant appointed by both companies for evaluating a possible merger. A joint working group of both companies appointed the consultant to study the merger option in November 2016.

If the merger continues as planned, the merged entity will be the largest leasing and hire purchase company (which is popularly known as a non-banking finance company) in Oman, with a combined net worth of OMR81.14 million and a network of 21 branches.

“It is an indication of consolidation in the leasing industry. Market conditions are a bit challenging, and, as a result, companies are looking for inorganic growth, which is possible only through mergers and acquisitions,” said Suresh Kumar, head of research at Al Maha Financial Services Company.

According to market sources, the merger will help the consolidation, in terms of size and scale, thereby allowing both companies to benefit from economies of scale.

National Finance, which holds OMR190.69 million in net investments in finance activities, has reported a net profit of OMR1.48 million in the first quarter of this year — an increase of 3.28 per cent.

Oman Orix Leasing, which has OMR184.79 million net investments in finance activities, has seen a 2 per cent growth in net profits, at OMR1.34 million for the first quarter of 2017. National Finance has a net worth of OMR43.34 million, while Oman Orix’s net worth by March-end stands at OMR37.8 million. Oman has six non-banking finance companies, with a wide network of branches spread across the country.

Source: Timesofoman

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

national finance offers cash buyout to oman orix shareholders for merger national finance offers cash buyout to oman orix shareholders for merger

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

national finance offers cash buyout to oman orix shareholders for merger national finance offers cash buyout to oman orix shareholders for merger

 



GMT 13:42 2015 Saturday ,04 April

Libyan warplane targets camp in Gharyan town

GMT 15:14 2017 Wednesday ,01 March

UN documents nearly 1,500 child soldiers in Yemen

GMT 07:24 2017 Sunday ,01 October

Mexico unlikely to find more quake survivors

GMT 16:15 2015 Wednesday ,11 November

German intelligence 'spied' on Fabius, FBI, UN bodies

GMT 01:32 2017 Saturday ,15 April

Russia's Putin earns about 157,000 USD in 2016

GMT 16:30 2017 Saturday ,15 July

Minister of planning gives priority

GMT 19:45 2017 Wednesday ,05 April

President of Senegal Meets Attorney General

GMT 05:18 2017 Thursday ,21 September

Over 80 missing after migrant boat sinks off Libya

GMT 19:22 2017 Saturday ,01 April

UN: Number of Syrian Refugees Tops 5 million

GMT 15:16 2016 Thursday ,29 September

FBI to put up database on police use of deadly force

GMT 05:06 2016 Friday ,30 September

Indian markets open flat

GMT 01:57 2017 Tuesday ,10 October

Twin suicide bombs kill 13 near Mogadishu airport

GMT 02:25 2017 Friday ,08 September

UAE celebrates National Day at Expo 2017 Astana

GMT 06:19 2017 Sunday ,08 January

Bleaching poses the gravest threat to coral reefs

GMT 12:35 2017 Monday ,18 September

Elham Shahin happy for “Day for Women”

GMT 09:46 2017 Thursday ,22 June

US existing home sales unexpectedly rise in May

GMT 02:36 2017 Tuesday ,10 January

US embassy condemns Al-Arish suicide attack

GMT 10:34 2017 Sunday ,26 November

czar faces graft probe
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday