Oman Telecommunications Company (Omantel) has signed purchase agreements with three shareholders of Kuwait-based Zain Group to give the Omani telco an additional 12.1% stake and take its total ownership to 21.9%, making it Zain Group’s second largest shareholder. In a statement, Omantel disclosed that Al Khair National for Stocks & Real Estate Company, Kuwaiti British Readymix Company and Gulf National Holding Company agreed to sell 12.1% of the fully paid and issued share capital in Mobile Telecommunications Company KSCP (Zain) for a total cash consideration of USD1.4 billion, at an offer price of KWD0.781 (USD2.578) per share.
Upon completion of the transaction following a formal block trade auction process under Boursa Kuwait (formerly Kuwait Stock Exchange) rules, the Board of Directors of Zain is expected to be reconstituted, Omantel added.
In August Omantel took an initial 9.8% stake in Zain Group by purchasing treasury shares subsequently converted into common stock. The total transaction value for its 21.9% stake was USD2.2 billion. Zain Group’s largest shareholder remains Kuwait Investment Authority, the country’s sovereign wealth fund, with a 24.6% stake.