Omantel completes acquisition of Zain stake for $2.19 billion

FROM P13 shares representing 12.1 per cent of the total fully paid and issued share capital from Al Khair National for Stocks & Real Estate Company WLL, Kuwaiti British Readymix Company WLL, and Gulf National Holding Company KSCC (collectively the ‘sellers’) for a total cash consideration of $1.35 billion.

This announcement triggered a formal public auction process under Boursa Kuwait rules, which was completed yesterday, marking the successful closing of the transaction. In addition, the Board of Directors of Zain is expected to be reconstituted.

The total equity value of the 21.9 per cent shareholding is $2.19 billion (RO 845 million). This includes the previously announced acquisition on August 24, 2017 of 425.7 million treasury shares representing 9.84 per cent of the total fully paid and issued share capital.

Omantel has financed this transaction with a combination of longterm and bridge loan facilities. The bridge loan facility will subsequently be taken out through long-term capital markets instruments.

Credit Suisse acted as exclusive financial adviser and Freshfields Bruckhaus Deringer LLP as legal adviser to Omantel. Credit Suisse and Citi are acting as Bookrunners, Mandated Lead Arrangers and Original Lenders; with Bank Muscat, HSBC and Standard Chartered Bank and Bank ABC as Bookrunners and Mandated Lead Arrangers in the acquisition financing.