Omantel agrees to acquire 9.84% stake in Kuwait’s Zain Group for RO326mn
Oman Telecommunications Co (Omantel) on Thursday signed a share purchase agreement to purchase 425.7mn treasury shares in Kuwaiti Mobile Telecommunications Company (Zain Group) which forms 9.84 per cent of the total outstanding common shares.
The purchase price of the treasury shares is KWD0.6 per share, valuing the transaction at RO325.6mn or US$846.1mn, Omantel said in a disclosure filed with the Muscat Securities Market (MSM). The transaction is subject to Kuwaiti regulatory bodies’ approval.
The transaction is in line with Omantel’s Corporate Strategy Omantel 3.0, launched in 2015 to diversify investment and position the business as a leading digital service provider in the region by 2020, Omantel said.
In a press release, Martial Caratti, chief financial officer of Omantel, said: “Acquiring a minority stake in Zain is a deliberate investment for Omantel as we position ourselves as a leading digital service provider. This is in line with our Corporate Strategy 3.0, launched in 2015. We have always emphasised that growth will come from continued diversification, and this acquisition positions Omantel for the future.”
The company said the transaction will benefit to position Omantel as a leading digital service provider and provide opportunity to cooperate across core business functions.
‘Omantel will explore ways to cooperate in several key areas including the wholesale telecom business, operations and networks, commercial activities, and knowledge and experience sharing. It will also allow Omantel to gain exposure to nine growth markets with a total population of 175mn, and provide significant growth drivers across a range of services and applications’, Omantel said in the press release.
It said the acquisition will improve profitability, leading to enhanced shareholder value.
Omantel said the transaction will also benefit the company to leverage Zain’s global scale and international expansion. Zain is a high performing and innovative telecoms business with a complementary geographical footprint.
The transaction will benefit Omantel to position it as a leading digital service provider