Oman Telecommunications Company (Omantel), the Sultanate’s incumbent telecoms operator, has signed a non-binding letter of intent (LoI) to acquire 12% of Zain Group from Al Khair and its subsidiaries and affiliates, for an unknown sum. The move comes shortly after the Omani provider 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. The deal was completed in August this year, with all acquired treasury shares converted into common stock.
The investment is part of Omantel’s strategy to diversify its exposure, the 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.