Omantel acquires minority stake in Zain
Oman Telecommunications Company (Omantel), the first integrated telecommunications services provider in Oman, has announced a share purchase agreement (SPA) whereby Omantel will purchase 425.7 million of Mobile Telecommunication Company’s (Zain) treasury shares at a price of 0.60 Kuwaiti dinar ($1.99) per share.
Once complete, Omantel will own a minority stake of approximately 9.84 percent in Zain’s outstanding common shares. The total value of the transaction is $846.1 million.
Martial Caratti, chief financial officer, 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 emphasized that growth will come from continued diversification, and this acquisition positions Omantel for the future.”
A statement released by Omantel listed the following benefits of the agreement:
The deal provides an opportunity to cooperate across core business functions.
OOmantel 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 175 million, and provide significant growth drivers across a range of services and applications.
The acquisition will improve profitability, leading to enhanced shareholder value. Omantel will explore options for cost synergies through operational cooperation
Oand capital expenditure.
It will leverage Zain’s global scale and international expansion. Zain is a high performing and innovative telecom business with a complementary geographical footprint. It is the most advanced digital service provider in the MENA region with strong partnerships with leading technology players across the globe. It has a fast growing and lucrative portfolio of diversified services, which include data monetization, enterprise (B2B), fixed broadband/FTTH services and smart city initiatives.
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