NBO shareholding, board shaken up

15 July 2005
A major shake-up took place at National Bank of Oman (NBO)in mid-July, as existing players sold stakes worth RO 80 million ($205.1 million) to Commercial Bank of Qatar (CBQ)and four board members were replaced. The moves follow the agreement of shareholders at an extraordinary general meeting (EGM) in late June for CBQ to take a 34.9 per cent stake in NBO and management control for three years (MEED 1:5:05).

In total, 17.9 million shares were sold, adding to the 10 million shares gained by CBQ through a rights issue in June. The Sheikh Suhail Bahwan Groupreduced its stake to 14 per cent from 34.6 per cent, Mohammed al-Barwani Holdingdivested completely its 6 per cent share and Abna Sultan Tradingsold 2 per cent of its holding, leaving it with 3.2 per cent.

The four newly appointed Qatari directors are Sheikh Abdullah bin Ali al-Thani, Omar Hussain al-Fardan, Andrew Stevens and Hugh Thompson, replacing Saad Suhail Bahwan, Amal Suhail Bahwan, Suresh Shivdasani and Mohammed al-Barwani. Officials say that under the terms of the agreement, CBQ personnel will exercise strong control over the credit committee.

A Qatari manager is due to be appointed in September. However, Sheikh Suhail Bahwan will remain as chairman. 'This arrangement was a special request from CBQ,' says an NBO spokesman. 'It was important to emphasise that CBQ is buying a stake in NBO, not buying one of the sultanate's national banks.'

You might also like...

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications