Omantel seeks to acquire additional 12pc stake in Zain

Business Reporter –
MUSCAT, OCT 9 –
Majority government owned telco Omantel has announced that it has signed a non-binding letter of intent with Al Khair, a company registered in State of Kuwait, to acquire all of its shares and the shares of its subsidiaries/affiliates in Kuwait-based Mobile Telecommunication Company (Zain).
The share purchase offer covers 12 per cent of the total share capital of Zain, said Omantel in a filing to the Capital Market Authority (CMA) on Monday.
“Al Khair is currently studying and evaluating the offer from Omantel and its legal and financial advisers,” it stated.
The move comes just two months after Omantel acquired a 9.84 per cent stake in Zain following a public auction process at Boursa Kuwait that was completed in August. The acquisition was made for a cash consideration of $846.1 million.
In a statement, Omantel said at the time that the acquisition of a minority stake in telecommunication firm Zain was part of a “strategic move for Omantel in line with its Corporate Strategy 3.0”.
With this acquisition, Omantel aims to create value for its shareholders, diversify revenue, raise its regional profile, and mitigate the risk of operating in a single market, it stated.