Govt stake in Oman Cement transfers to OIF

The transfer of  shares to other state-owned corporates is aimed at making companies more productive and efficient

SAMUEL KUTTY -

MUSCAT -

Dec 7: In its endeavour to increase the efficiency of state-owned firms, Oman’s Ministry of Finance transferred its majority stake in Oman Cement to Oman Investment Fund (OIF) on Wednesday.

The transfer of the equity was announced by Jamal Shamis al Hoti, Chief Executive Officer of Oman Cement in a filing to the Muscat Securities Market.

“We are pleased to inform that the company has received a letter from the Ministry of Finance declaring the transfer of the government of 168,740,170 equity shares of the company, owned by the Government of Oman, which represents 51 per cent of the equity capital of the company to the Oman Investment Fund at a price of RO 0.484 per share”, Jamal said in the notification.

Oman’s Ministry of Finance started transferring shares to other state-owned corporates and sovereign funds in the middle of this year, a move aimed at making the companies more productive and efficient.

“The government strategy is that the transfer of the stakes to new management will give it help to increase its efficiency”, said Joice Mathew, Senior Analyst with United Securities.

The government has been stressing on the need for state-linked firms and ministries to sell assets and bring on private partners to invest in projects, instead of merely relying on government funds and contractors.

In August, the government transferred 51 per cent stake in the joint stock Oman Flour Mills Company to Oman Food Investment Holding (OFIC).

This was done to have all government investments in food companies to be brought under one holding company.

OFIC is a state-owned entity established to help achieve the government’s food security strategy, through partnerships with government agencies, private operators and investors.

Again in September, the ministry’s stake in Salalah Port Services was transferred to Oman Global Logistics Group, which has interests in transport and support services.

Oman has more than 60 companies owned by the government, which also holds stakes in many listed firms as well.

The Ministry of Finance also transferred its stakes in Oman and Emirates Investment Holding Co and Port Services Corporation to the Oman Investment Fund in the third quarter of this year.

Nama Group, the holding company of state-owned power sector entities, announced its plan for privatisation of its subsidiary, Muscat Electricity Distribution Company (MEDC), by the end of this year.