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# Oman's Bank Nizwa submits non-binding offer to acquire Alizz Islamic Bank at 1.2x book value
- URL: https://www.theglobalbanker.com/bank-nizwa-alizz-islamic-bank-non-binding-offer-2026/
- Published: 2026-07-19T15:41:00.000Z
- Updated: 2026-10-02T00:30:55.000Z
- Description: Bank Nizwa has submitted a non-binding letter of intent to acquire Alizz Islamic Bank from Oman Arab Bank at an indicative valuation of 1.2 times book value.
- Author: TGB Editorial Team
- Tags: M&A, MENA

Bank Nizwa SAOG has submitted a non-binding letter of intent to acquire the entire share capital of Alizz Islamic Bank SAOC from Oman Arab Bank SAOG at an indicative valuation of 1.2 times book value, the Omani lender disclosed in a Muscat Stock Exchange filing on 16 July.

The proposed transaction would be structured as an acquisition followed by a merger by incorporation of Alizz into Bank Nizwa, which would create the largest Islamic bank in the Sultanate. The absolute deal value was not disclosed in the market notice.

#### STRUCTURE AND FUNDING PLAN

Under the proposal outlined in the market disclosure, Bank Nizwa would first acquire 100% of Alizz Islamic Bank and would then complete a legal merger by incorporation with the target folded into the buyer. Alizz Islamic Bank has been a wholly owned subsidiary of Oman Arab Bank SAOG since the latter's takeover of it in 2020.

Funding for the transaction would combine two principal instruments. Bank Nizwa proposes to issue perpetual Additional Tier 1 sukuk and to raise fresh equity through new shares subscribed by Ominvest, the Omani investment company. If completed on the terms proposed, Ominvest could end up holding as much as 20% of Bank Nizwa's issued share capital.

The indicative valuation of 1.2 times book value was included in the letter of intent, though Bank Nizwa did not disclose an absolute deal value in its market notice. The proposal remains non-binding at this stage and is subject to further due diligence and negotiation between the parties before any definitive documentation could be signed.

#### REGULATORY APPROVALS REQUIRED

Any binding transaction would be subject to regulatory and shareholder approvals, the filing noted. 

The move would combine two of Oman's Islamic banks into a single institution. Bank Nizwa was established as Oman's first Islamic bank, and Alizz as the second.

Ominvest's board has approved participation in the funding structure supporting the acquisition. 

Neither the size of Ominvest's investment nor the amount of the planned sukuk issuance was disclosed. 

Ominvest, formally Oman International Development and Investment Company, would become a strategic shareholder in Bank Nizwa through the share subscription.