Update regarding acquisition offer by SICO in MC

Date: 20^th December 2020

Subject: Update regarding acquisition offer by SICO for a majority stake in Muscat Capital

We refer to our disclosure dated 29^th April 2020 regarding the acquisition offer received from SICO BSC (c) for a majority stake in Muscat Capital Company (cjsc) a wholly-owned Saudi based subsidiary of Bank Muscat SAOG whereby the Board of Directors of Bank Muscat, at its meeting held on 28 April 2020, had agreed to explore the offer. Muscat Capital Company has a book value of approximately SAR 80mn as on 30^th June 2020 (equivalent to approximately OMR 8.2mn).

We would like to disclose that the necessary due diligence and valuation exercise was completed, the negotiations on the terms of the transaction were concluded and Board of Directors approvals were obtained by both parties. Bank Muscat and SICO agreed to go forward with the transaction by signing the necessary agreements. 

Pursuant to the terms of the transaction, SICO shall acquire approximately 72.71% stake in Muscat Capital through transfer of all its treasury shares to Bank Muscat. This would result in Bank Muscat owning approximately 9% shareholding in SICO upon completion of the transaction. The closing of the transaction is subject to receipt of requisite regulatory approvals in Sultanate of Oman, Kingdom of Bahrain and Kingdom of Saudi Arabia.

Waleed K. Al Hashar

Chief Executive Officer