Omantel to acquire minority stake in Zain

Total consideration of the transaction is valued at $846.1 million
Martial Caratti, CFO, Omantel
Martial Caratti, CFO, Omantel

Share

Omantel  is going to purchase 425.7 million of  Zain’s treasury shares in a cash transaction at an offer price of KWD 0.60($1.99) per share(subject to regulatory approval).

Once complete, Omantel will own a minority stake in Zain Group of approximately 9.84% in outstanding common shares. The total consideration of the transaction is valued at $846.1 million (OMR 325.6 million).

Martial Caratti, CFO, Omantel, said: “Acquiring a minority stake in Zain is a deliberate investment for Omantel as we position ourselves as a leading digital service provider. This is in line with our Corporate Strategy 3.0, launched in 2015. We have always emphasised that growth will come from continued diversification, and this acquisition positions Omantel for the future.”

The acquisition of a minority stake is part of Omantel’s corporate strategy 3.0 and is in line with the strategic objective of diversifying exposure and positioning the business for future growth.

Moreover, Omantel will explore ways to cooperate in several key areas including the wholesale telecom business, operations and networks, commercial activities, and knowledge and experience sharing.The transaction will also allow Omantel to gain exposure to nine growth markets with a total population of 175 million, and provide significant growth drivers across a range of services and applications.

The acquisition will improve profitability, leading to enhanced shareholder value. Omantel will explore options for cost synergies through operational cooperation and capital expenditure.

And of course, Omantel will be well-placed to leverage Zain’s global scale and international expansion. Zain is a high performing telecoms business with a complementary geographical footprint. 

Credit Suisse are acting as exclusive financial adviser and Freshfields Bruckhaus Deringer LLP are acting as legal adviser to Omantel.

Editor's Choice

Bahrain tops London and Silicon Valley for percentage of female startup founders - new report
Said to be among top 10 startup ecosystems with the largest share of female founders.
From the mag: Inside O2O2’s quest for fresher air with fashionable face masks
O2O2 isn’t just a face mask that’s been hitting the runways at Fashion Weeks worldwide. It’s also tackling the problem of polluted air at its source. Is there anything apps and mobile networks can’t do?

Most popular

Don't Miss a Story