Omantel said on Monday it had agreed to buy a 12 per cent stake in Kuwaiti telecommunications firm Zain in a deal that will more than double its stake. The stake is worth about $946 million based on Zain’s current market value.
In August, Omantel purchased a 9.84 per cent stake in Zain for US$846 million, saying the transaction was part of a strategy launched to diversify its investment and market position in the region.
On Monday, Omantel said it had signed a non-binding letter of intent with Kuwait-based Al Khair, an investment vehicle of Kuwait’s Al Kharafi merchant family, to purchase its 12 per cent stake in Zain.
Al Khair is studying and evaluating the offer, the statement said, without providing the price. The biggest shareholder in Zain is the Kuwait Investment Authority sovereign wealth fund with over 24 percent.
“Omantel wishes to announce that it has signed on 8 October 2017 a non-binding letter of intent with Al Khair , a company registered in State of Kuwait, with respect to the purchase of all of its shares and the shares of its subsidiaries/affiliates in the share capital of Zain and that amounts to 12 per cent of the total share capital of the company. Al Khair is currently studying and evaluating the offer from Omantel and its legal and financial advisors.’