MUSCAT: Omantel has announced that it anticipates a positive financial impact in Q4 2023 from Zain KSA's divestment of a 20% stake in Golden Lattice Investment Company (GLIC) to the Public Investment Fund (PIF) for SAR 726 million. The announcement was made through Muscat Stock Exchange (MSX) on Tuesday.
According to a disclosure issued by Zain Group on November 20, 2023, the carrying value of the divested shares amounted to SAR 605 million, resulting in a potential gain of up to SAR 121 million (RO 12.4 million). Zain Group's share of this gain will be 37.045%, while Omantel's effective share will be 8.12% in accordance with its ownership in Zain Group.
The disclosure further indicated that the transaction is expected to be finalized in the fourth quarter of 2023, and Omantel will provide further updates on the transaction's financial impact upon its completion.
mer Ahmed Issa, a Muscat-based stock market expert, commented that the sale of 20% of Zain KSA's stake in GLIC to PIF is a positive step for the company. He further stated that PIF's investment signals a strong vote of confidence in Zain KSA's future prospects.
Issa explained that the sale is expected to enhance Zain KSA's financial performance by increasing cash flow and improving profitability. The sale is also anticipated to support the company's growth by providing capital for investments in new projects.
Regarding the deal's impact on Omantel, Issa stated that it will result in a one-time gain for the company in the fourth quarter of 2023. He added that this gain will contribute to improving Omantel's financial performance and bottom line.