Omantel buys 10% stake in Zain for USD 846 million

Thursday 10 August 2017 | 12:30 CET | News

Omantel has agreed to buy a 9.84 percent stake in the Middle East mobile operator Zain for USD 846.1 million. Omantel will buy 425.7 million treasury shares from Zain for KWD 0.60 per share, a significant premium to the KWD 0.45 closing price the day before the announcement. 

Omantel said the takeover is part of its strategy to diversify its operations. The companies will look at ways to cooperate in areas such as wholesale, operations and networks, commercial activities, and knowledge sharing.

Oman is one of the few markets in the Middle East where Zain is not active. In May it was one of the bidders for the third mobile operator licence on offer in Oman. In addition to Omantel, the other operator in Oman is Qatar-based Ooredoo. The winner of the new licence is expected to be announced in early September. 

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