Oman Arab Bank SAOC signed a memorandum of understanding to acquire Alizz Islamic Bank SAOG (MSM:BKIZ) on October 4, 2018. Oman Arab Bank SAOC entered into a combination agreement to acquire Alizz Islamic Bank SAOG (MSM:BKIZ) on June 15, 2020. As of December 30, 2019, Oman Arab Bank SAOC sent an offer letter to Alizz Islamic Bank SAOG proposing a swap ratio of around 80.64:19.36 for the shareholders of Oman Arab Bank SAOC and Alizz Islamic Bank SAOG. Each continuing AIB shareholder will receive 0.323 shares in SAOC for every one share it holds in SAOG. Those AIB Shareholders who elect to accept the offer in exchange for cash consideration and satisfy the cash acceptance qualification provided that the maximum number of AIB shareholders who shall be eligible to receive cash consideration shall be AIB shareholders 24.99% of the total issued share capital of AIB SAOG. Once AIB shareholders holding 90% or more of the shares in AIB SAOG accept the Offer, subject to regulatory approvals, OAB intends to exercise the squeeze-out of remaining AIB shareholders. OAB has already received undertakings from AIB shareholders holding more than 92% of the shares in AIB. The transaction will result in Oman Arab Bank SAOC becoming a listed holding company and Alizz Islamic Bank SAOG becoming a fully-owned Islamic banking subsidiary. SAOC will initiate the transfer of Al Yusr to AIB as consideration. Financial and legal advisors have been appointed to conduct a due diligence review of both entities paving the way for the proposed merger. The transaction is subject to approval by the Board of Directors, shareholders of Oman Arab Bank SAOC and Alizz Islamic Bank SAOG, Central Bank of Oman, regulatory approval, minimum tender and other relevant authorities. As of January 16, 2020, the board of directors of Alizz Islamic Bank SAOG approved the transaction. As of April 21, 2020, the transaction has received the approval of the Central Bank of Oman. As of June 17, 2020, the transaction was approved by the Capital Market Authority. The offer is expected to close on June 28, 2020. Nick Simpson and Justine Harding of Dentons & Co, Oman Branch acted as a legal advisor to Oman Arab Bank SAOC. Ubhar Capital SAOC acted as manager to the offer in the transaction.

Oman Arab Bank SAOC completed the acquisition of Alizz Islamic Bank SAOG (MSM:BKIZ) on June 28, 2020. Shareholders of Alizz Islamic Bank SAOG (AIB) holding more than 90% of the shares in AIB accepted the Takeover Offer by submitting their Acceptance Forms to the Offer Manager and thus, Oman Arab went ahead with the compulsory acquisition of the remaining shares.