Omantel has won the bid for the acquisition of 521,975,416 million shares of Kuwait's Mobile Telecommunication Company (Zain Group) at a price of KWD 0.781 per share, following a public auction at Boursa Kuwait.
As announced on October 26, Omantel signed a share purchase agreement (SPA) with Al-Khair National for Stocks and Real Estate Company, Kuwaiti British Readymix Company, and Gulf National Holding Company for its proposed purchase of Zain Group shares, representing 12.1 per cent of Zain's fully paid in and issued share capital, for a total cash consideration of $1.35 billion (RO520 million). This announcement triggered a formal public auction process under Boursa Kuwait rules, which was completed on November 12.
When the share purchase is settled on November 15. Omantel will own, directly and indirectly, approximately 21.9 per cent of the total issued and outstanding shares in Zain Group. "This would result in Omantel becoming the second largest shareholder in Zain after Kuwait's sovereign wealth fund, (the Kuwait Investment Authority)," the statement said.
This investment is a strategic move for Omantel in line with its Corporate Strategy 3.0 and aims to create value for its shareholders, diversify revenue, and raise its regional scale and reach, the company said. Omantel financed this transaction with a combination of term loan and bridge loan facilities. The bridge loan facility will subsequently be taken out through long-term capital markets instruments.