Omantel completes 12% stake buy in Zain Group

Monday 13 November 2017 | 09:49 CET | News

Omantel has completed the acquisition of a 12.1 percent stake in Zain Group for USD 1.35 billion, making Omantel the second largest shareholder in Zain Group with a 21.9 percent stake. The acquisition creates a  group that will be the third largest combined telecoms group in the MENA region, with 52 million customers. 

On 26 October, Omantel agreed to acquire 521.97 million ordinary shares representing 12.1 percent of the total fully paid and issued share capital from Al Khair National for Stocks & Real Estate Company, Kuwaiti British Readymix Company and Gulf National Holding Company for a total cash consideration of USD 1.35 billion. This announcement triggered a formal public auction process under Boursa Kuwait rules, which completed on 12 November, marking the successful closing of the transaction.

In addition, the board of Zain is expected to be reconstituted. Talal Al Mamari, CEO of Omantel has been appointed as a non-executive director in the Zain board.  

The total equity value of the 21.9 percent shareholding is USD 2.19 billion (OMR 845 million). This includes the previously announced acquisition on 24 August of 425.7 million treasury shares representing 9.84 percent of the total fully paid and issued share capital. Omantel has financed this transaction with a combination of long-term and bridge loan facilities. The bridge loan facility will subsequently be taken out through long-term capital markets instruments.

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