Oman International Bank (OIB) will conduct an ordinary general meeting of shareholders on May 31 to elect a new board, which will include HSBC representatives. The shareholders' meeting for electing a seven-member board will be conducted at the Al Bustan Palace Hotel. The new board will have a three year term, till the bank's annual general meeting in 2015. Sources said that HSBC Oman will have a sizable representation on the board, in line with its proposed 51 per cent stake in the merged entity. Meanwhile, OIB's plans to continue merger proceedings, despite the Ministry of Commerce and Industry halting the merger after a lawsuit against HSBC Oman, aided a 1.7 per cent surge in OIB shares on the Muscat Securities Market last Monday. Oman International Bank shares touched a one-month high of 238 baisas, amid 309,223 shares changing hand on the Muscat Securities Market (MSM). OIB's assurance that the litigation will not affect merger process also aided to boost investor confidence in the bank shares. "Neither HSBC Oman nor OIB believe that the any creditors will be prejudiced by the merger. This is a normal part of the process for mergers of this type and is provided for in the law and this particular matter is being evaluated by the parties and the Ministry of Commerce and Industry,- OIB said in a statement last week, after Times of Oman carried a report. "Oman International Bank and HSBC Oman are proceeding with all the steps required for the merger,- added the statement. Oman International Bank shareholders also approved the merger terms, which included issuing 1.02 billion ordinary shares in the bank to HSBC Bank Middle East Limited (equivalent to a 51 per cent shareholding in the combined entity). Oman International Bank will continue to be listed on the Muscat Securities Market and will be renamed HSBC Bank Oman, Times of Oman reported.
