Shareholders of 2 Oman firms approve merger

The merger will create one of the largest entities in Oman's services sector with an enhanced global footprint and operations across eight business lines - contract services, technology and healthcare, education and training, media communications, ship owning, ship repair, oil and gas and fabrication and stainless steel products.

The proposed merger will be effected through an exchange of shares held by the shareholders of Team for new shares to be allotted by Renaissance. The swap ratio is 3.82:1, i.e. for every 382 shares held in Team 100 shares of Renaissance will be allotted. Simultaneously Renaissance will issue bonus shares to all its shareholders (including those who were of Team) in the ratio of 62.5 shares for every 100 shares held in the company, post the merger. This will take the equity capital of the company to RO19.3 million and its net worth to over RO50 million. "With the approval of shareholders in place, the company will be proceeding ahead to complete the remaining statutory formalities. This will involve filing the merger agreement and other papers with the Capital Market Authority/Ministry of Commerce and Industry and seeking the cancellation/delisting of Team shares upon approval of the merger," a statement said, adding:

"At that stage the new shares of Renaissance (including the bonus shares) will be issued. The company will seek to expedite the entire process and ensure that the period for halting trading in its shares for issue of the new shares is kept to a minimum."

For the year ended December 31, 2004, Renaissance had reported a turnover of RO 62.6 million, net earnings of RO13.5 million and dividend of 45 per cent (35 per cent cash, 10 per cent stock). Team has reported a turnover of RO24.7 million, net earnings of RO2.5 million and cash dividend of 10 per cent.