25 Aug 2017
Oman Telecommunications Company (Omantel), the Sultanate’s incumbent telecoms operator, has won a bid to acquire 425.7 million treasury shares representing 9.84% of Zain Group’s fully paid in and issued share capital at an offer price of KWD0.600 (USD1.99) per share, for a total cash consideration of KWD255.4 million. As previously announced by TeleGeography’s CommsUpdate, Omantel and Zain entered into a share purchase agreement earlier this month, with the announcement triggering a formal block trade auction process under Boursa Kuwait rules. Following the completion of the deal, the treasury shares will now be converted into common stock, with the corresponding voting rights and dividends.
The investment is part of Omantel’s strategy to diversify its exposure, the Omani firm said, adding that the company aims to ‘position ourselves as a leading digital service provider’. Going forward, the duo will look to collaborate on the wholesale telecoms business, operations and networks, and commercial activities.