Tuesday, March 19, 2024 | Ramadan 8, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Public auction of Zain Group stake today: Omantel

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Subsequent to Omantel’s announcement of August 10, 2017 about the signing of Share Purchase Agreement between Omantel and Mobile Telecommunication Company (Zain Group) for the acquisition of 425.7 million treasury shares, the public auction of the treasury shares will take place today, August 24, in accordance with Boursa Kuwait regulations.


The treasury shares form 9.84 per cent of the outstanding common shares of Zain Group for a total consideration of RO 325.6 million ($846.1m).


If successful in the auction, Omantel will own 9.84 per cent shares in Zain Group.


Acquiring a minority stake in Zain is a deliberate investment for Omantel to position itself as a leading digital service provider. This is in line with Omantel’s Corporate Strategy 3.0, aiming for growth and diversification.


Transaction Benefits


n Positions Omantel as a leading digital service provider. The acquisition is part of Omantel’s Corporate Strategy 3.0 and is in line with the strategic objective of diversifying exposure and positioning the business for future growth.


n 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 markets with a total population of 175 million, and provide significant growth drivers across a range of services and applications.


n Income diversification and enhanced shareholder value. The acquisition is expected to improve profitability, leading to enhanced shareholder value. Omantel will explore options for cost synergies through operational cooperation and capital expenditure.


n Leverage Zain’s global scale and international expansion. Zain is a high performing and innovative telecoms 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 includes data monetization, Enterprise (B2B), fixed broadband/ FTTH services and smart city.


n Omantel is financing this acquisition with a bridge loan facility which will subsequently be taken out through a long-term loan facility and/or capital markets instrument. Both Moody’s Investors Services (“Moody’s”) and S&P have confirmed Omantel’s current ratings post announcement with Moody’s qualifying further the transaction as credit positive.


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