Oman­tel agrees to ac­quire 9.84% stake in Kuwait’s Zain Group for RO326mn

Muscat Daily - - BUSINESS -

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

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