4 days ago
Sohar International eyes majority stake in Saudi's Neo Group
MUSCAT, AUG 12
Sohar International Bank SAOG (SIB) has announced plans to acquire a controlling stake in Neo Group Limited, a financial services firm based in the Kingdom of Saudi Arabia, as part of its wider regional growth strategy.
In a filing with the Muscat Stock Exchange (MSX) on Tuesday, Aug 12, SIB said it has approached the Central Bank of Oman (CBO) seeking preliminary approval to sign a non-binding Memorandum of Understanding (MoU) with the shareholders of Neo Group. The MoU outlines the possibility of acquiring up to 55 per cent of the company's share capital from an existing Saudi shareholder, who currently owns an 80 per cent equity stake.
Neo Group is an established financial institution in Saudi Arabia, holding regulatory licences from the Capital Market Authority (CMA) to provide asset management and financial advisory services. According to SIB, the proposed acquisition aligns with its vision to expand its footprint in key regional markets and reinforce Oman's presence in the Gulf's fast-growing financial services sector.
SIB noted that the transaction is still in its early stages and will be subject to a series of conditions before completion. These include a satisfactory outcome from the due diligence process, successful negotiations, execution of definitive agreements, and obtaining all necessary regulatory, corporate, and other mandatory approvals from both Omani and Saudi authorities.
'This intended acquisition forms part of Sohar International's regional expansion strategy and vision to strengthen Oman's representation in regional financial markets,' the bank said in its disclosure.
The bank emphasised that it will make further announcements in accordance with regulatory requirements as and when material developments take place.
The disclosure was signed by Abdul Wahid Mohamed al Murshidi, Chief Executive Officer of Sohar International Bank.
