Move targeting better balance sheets and cashflow
- Oman International Development & Investment Company (Ominvest) and Oman National Investment Corporation Holding (Onic) have approved a merger
- Onic will be incorporated into Ominvest and its shareholders will be allocated shares in Ominvest
The boards of Oman International Development & Investment Company (Ominvest) and Oman National Investment Corporation Holding (Onic) have unanimously approved a merger between the two investment funds.
Onic will be dissolved and incorporated into Ominvest.
The allocation of Ominvest shares to Onic shareholders will be 1.052 shares for every share held. This will increase Ominvests issued capital from RO37m ($96m) to RO55m.
Onic had assets worth RO152m at the end of 2014, and reported a net profit of RO10m.
Omans sovereign wealth fund, Oman Investment Fund, acquired 41 per cent of Onic in 2013. The stake was thought to be worth about RO22m at the time.
Ominvest reported a net profit of RO28m for 2014, and had assets worth RO1.9bn.
The companies told local press that the merger would result in better balance sheets and cashflow, more efficient operations and lower funding costs. The expected higher returns for investors could attract more interest.
Ominvests shareprice rose 2.6 per cent on the news on 2 June, while Onics showed little activity.
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.