Monday, 20 November 2017

Omantel to become Zain's second-largest shareholder

By Mary Lennighan, Total Telecom
Friday 27 October 17

Oman-based telco signs deal to acquire an additional 12.1% stake in Zain for US$1.35 billion

Omantel has offered to acquire an additional 12.1% stake in Zain a move that will make it the Kuwait-based telco group's second-largest shareholder. Under the terms of the deal…

Omantel has offered to acquire an additional 12.1% stake in Zain a move that will make it the Kuwait-based telco group's second-largest shareholder.

Under the terms of the deal, Omantel will pay US$1.35 billion for the shares, at an offer price of 0.781 Kuwaiti dinars (€2.19) per share.

The operator has inked a deal with a number of Zain shareholders – Al Khair National for Stocks & Real Estate Company, Kuwaiti British Readymix Company, and Gulf National Holding Company – to purchase the shares, but the transaction relies upon the completion of the formal block trade auction process required by Kuwaiti stock exchange rules.

Zain announced earlier this month that it had made an offer for shares held by Al Khair and its subsidiaries and affiliates, and said that the firm was evaluating the offer. It did not comment on the value of the proposed deal.

Once it takes control of the 12.1% stake, Omantel will become Zain's second-largest shareholder with a 21.9% holding, having paid $846.1 million for 9.84% in August.

It appears that its stake will also give it a position on Zain's board.

Once the deal is completed, "the board of directors of Zain is expected to be reconstituted," Omantel said, in a statement.
 

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