Muscat: Oman Orix Leasing Company’s shares touched their maximum ceiling during a single trading session for the second consecutive session in a row on Tuesday, following an attractive cash buyout proposal from National Finance at a price of approximately 173 baisas per share.
This is part of the merger proposal between the National Finance Company and Oman Orix Leasing Company.
Oman Orix Leasing shares surged by 10 per cent (the upper ceiling permitted by the Muscat Securities Market, which is also a circuit breaker) to touch 143 baisas amid 190,800 shares changing hands on Tuesday. The company’s shares touched its upper ceiling on Monday as well, after National Finance announced its cash buyout plan.
Oman Orix on Sunday said the company’s board has agreed ‘in principle’ to the cash offer, which equates to a price of 1.2 multiples of the closing book value of Oman Orix Leasing by the end of the first quarter of 2017.
The proposed cash offer is subject to approvals from the shareholders of both National Finance and Oman Orix Leasing and from relevant regulatory authorities.