Oman International Bank (OIB), which has entered into an agreement with HSBC Middle East is to merge with HSBC Oman, will seek shareholder approval for closure, sale or disposition of all of its branches and business in India and Pakistan, OIB said in a disclosure filed with the Muscat Securities Market (MSM).
OIB has two branches in India – in Mumbai and Kochi – while its two branches in Pakistan are located in Karachi and Lahore.
OIB has also invited shareholders to an extraordinary general meeting (EGM) to be held on May 9, 2012, at InterContinental Muscat to approve the proposed merger with HSBC Oman.
According to the OIB disclosure, the EGM will look “to approve the closure, sale or other disposition of all of the bank’s branches and business in the Republic of India and the Islamic Republic of Pakistan on such terms as the board of directors may think fit.”
OIB will issue 1,020,159,523 new ordinary shares to HSBC Middle East Bank, so that the total issued and fully paid capital of the bank will consist of 2,000,312,790 shares of 100bz each with 51 per cent of the total shares held by HSBC Middle East Bank.
SNR Denton, a corporate advisory firm which advised HSBC on the merger with OIB, said in a press release on Wednesday that under the terms of the merger, HSBC will have management and board control of the combined entity which will be named HSBC Oman Bank SAOG, Muscat Daily reported.