Omantel has entered into US$846 million deal to acquire a nearly 10 per cent of the Kuwait-based regional operator Zain Group, which operates in eight countries in the Middle East and Africa, including Saudi Arabia, Iraq and Jordan.
The investment of the minority stake in Zain is part of Omantel’s strategy to diversify its exposure. Zain is expected to use the proceeds for prepayment of certain debt obligations.
The sale of treasury shares of Zain was approved by its shareholders and the Capital Markets Authority of Kuwait earlier this year and the current transaction has been approved by the Board of Directors of both Zain and Omantel.
The transaction is subject to certain other regulatory approvals and processes including the approval of Boursa Kuwait and is expected to close in the third quarter of 2017.
Bader Nasser Al-Kharafi, VP and Group CEO, Zain
The liquidity from the sale of these treasury shares will significantly enhance Zain's strategic and financial flexibility at a time where we continue to seek opportunities in the digital space and invest in upgrading our modern networks to enhance the mobile experience for our customers.
Martial Caratti, Chief Financial Officer, Omantel
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.
