Muscat – Dhofar International Development & Investment Holding Company (DIDIC) – which revealed its intention to explore a merger with Oman Investment & Finance Company (OIFC) in February – has submitted a final offer for the merger with OIFC.

‘The board of directors decided to submit the final offer for the merger between DIDIC (the merging company) and OIFC (the merged company),” DIDIC said in a disclosure to the Muscat Stock Exchange on Thursday.

In its final offer, DIDIC proposed the merger through the consolidation method. The offer includes an agreement on the swap ratio of the shares of the merging and merged companies, which will be disclosed subsequently.

According to the terms of the offer, DIDIC will also increase its capital and allocate it to the shareholders of OIFC.

‘The board of directors of DIDIC believes that the merger is in the interests of the company’s shareholders by increasing its market share, optimising the cost of operations, and expanding business in new geographical areas in Oman,’ DIDIC said.

The merger is subject to obtaining necessary approvals from regulators and fulfilling other applicable requirements, the company added.

In a separate disclosure to the Muscat Stock Exchange, OIFC confirmed that it received a letter from DIDIC expressing its desire to merge with OIFC through incorporation.

‘We would like to inform our shareholders that the company received a detailed merger offer from DIDIC on May 31, 2023, which includes the swap ratio of the shares of the merging and merged company. The board of directors will discuss the merger offer and will disclose any decision that could be taken in this regard in due course,’ OIFC said.

The proposed merger is subject to applicable laws, approval from relevant regulatory authorities, and approval from the shareholders of both companies, OIFC added.

DIDIC is one of the largest investment holding companies in Oman. Its main activities include investment in businesses, marketable securities, and promotion of new projects. The company holds investments in subsidiary and associate companies.

On the other hand, OIFC is Oman’s leading organisation in billing and collection of utilities, providing a centralised collection point for customers to pay for their electricity, water, and telecom utilities. It is also involved in the collection of Public Authority for Social Insurance subscriptions and investments in the banking, finance, and electricity contracting sectors.