Event: In an announcement on the exchange, Bank Sohar stated that it has agreed with Bank Dhofar on a swap ratio of one share of Bank Dhofar to be exchanged for 1.29 share of Bank Sohar. The bank also stated that further details of the proposed merger will be announced once finalized.   Impact: Based on yesterday’s close, Bank Sohar’s stock is valued at a discount when compared to the agreed swap ratio. On Bank Dohfar’s stock price of OMR0.245/share, we estimate Bank Sohar’s stock price to be OMR0.190 based on the swap ratio. (Murad Ansari, Company disclosures)   Bank Dhofar: OMR0.25 as of 7 June 2016, Rating: Sell, FV: OMR0.22/share, MCap: USD1,096mn, BKDB OM / BDOF.OM Bank Sohar: OMR0.18 as of 7 June 2016, Rating: Neutral, FV: OMR0.14/share, MCap: USD739mn, BKSB OM / BKSB.OM