Omantel has acquired 9.84 per cent of Zain’s shares for RO 325.6 million ($846 million/ KWD 255.4 million) at an offer price of KWD 0.600 per share after an auction at Kuwait Stock Exchange on Thursday.
Zain and Omantel entered into a share purchase agreement (SPA) for Zain’s treasury shares on August 10.
This announcement triggered a formal block trade auction process under Boursa Kuwait rules, and culminated in a ceremony hosted by Boursa Kuwait to mark the successful closing of the transaction.
The ceremony was attended by Bader Nasser al Kharafi, Zain Vice-Chairman and Group CEO, Talal bin Said al Maamari, CEO of Omantel, and Khaled al Khaled, CEO of Boursa Kuwait.
Bader al Kharafi, Zain Vice-Chairman and Group CEO, said: “We welcome Omantel’s investment in Zain, and we look forward to exploring mutually beneficial synergies and business enhancing opportunities across the region. The strategic visions of both Zain and Omantel complement each other as do our cultures, and we are confident that this deal is value-enhancing to all our stakeholders on multiple fronts. The liquidity from this transaction brings many benefits to Zain as it enhances our financial flexibility as we continue to seek opportunities in the digital space and invest in upgrading our modern networks to enhance the mobile experience for our customers. Additionally, the deal allows us to reduce our debt levels as well as increasing our shareholders’ equity”.
Talal bin Said al Maamari, CEO of Omantel, said: “The global telecoms market is changing fast, and our region has not escaped this trend. Data and content is where growth lies and investing in innovative digital products is critical to building a stronger company. In this competitive environment, our acquisition of a minority stake in Zain Group is a strategic move for Omantel as we continue to deliver against our Corporate Strategy 3.0, create value for shareholders, diversify our revenue, raise our regional profile, and mitigate the risk of operating in a single market.
Omantel is the incumbent player in Oman, with expertise in fixed, mobile and broadband networks and wholesale operations. We have long admired Zain for their deep digital expertise and regional footprint which is highly complementary to ours.
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