Omantel Completes Acquisition of Zain Shares, Bringing Total Shareholding in Zain Group to 21.9 Percent

Press release

Published November 12th, 2017 - 08:17 GMT

Omantel is now the second largest shareholder in Zain Group, with a 21.9% stake. (Pictured here: Talal Said Marhoon Al Mamari, Chief Executive Officer, Omantel)

Oman Telecommunications announces it has won the bid to acquire 12.1% of the issued share capital in Mobile Telecommunications Company KSCP, making Omantel the second largest shareholder in Zain Group with a 21.9% stake.

The acquisition creates a new digital telecom powerhouse capable of leading digital transformation across the MENA region. The new group will be the third largest combined telecoms group in the MENA region, with 52 million customers.

Transaction Terms

On 26 October 2017, Omantel entered into a share purchase agreement (‘SPA’) to acquire 521,975,416 million ordinary shares representing 12.1% of the total fully paid and issued share capital from Al Khair National for Stocks & Real Estate Company W.L.L., Kuwaiti British Readymix Company W.L.L., and Gulf National Holding Company K.S.C.C. (collectively the ‘Sellers’) for a total cash consideration of US$1.35 billion. This announcement triggered a formal public auction process under Boursa Kuwait rules, which completed today, marking the successful closing of the transaction. In addition, the Board of Directors of Zain is expected to be reconstituted.

The total equity value of the 21.9% shareholding is US$ 2.19 billion (OMR 845 million). This includes the previously announced acquisition on the 24 August 2017 of 425.7 million treasury shares representing 9.84% 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.

Credit Suisse acted as exclusive financial adviser and Freshfields Bruckhaus Deringer LLP as legal adviser to Omantel.

Credit Suisse and Citi are acting as Bookrunners, Mandated Lead Arrangers and Original Lenders; with Bank Muscat, HSBC and Standard Chartered Bank and Bank ABC as Bookrunners and Mandated Lead Arrangers in the acquisition financing.

Omantel Conference Call and Webcast

Omantel will host a conference call on Monday 13 November 2017 at 16.00 (Oman Time Zone) to discuss the transaction with the financial community. The conference call* details are as below.

Background Information

Omantel

Oman's first and leading integrated telecommunications services provider, enabling the digital society to flourish, allowing new ways of doing business while delivering a world of iformation and entertainment right to your fingertips.

Company Profile

Zain

Zain is the pioneer of mobile telecommunications in the Middle East. We began life in 1983 in Kuwait as the region’s first mobile operator, and since the initiation of our expansion strategy in 2003, we have expanded rapidly. Today, we are a leading mobile voice and data services operator with a commercial footprint in 8 Middle Eastern and Africa countries with a workforce of over 6,000 providing a comprehensive range of mobile voice and data services to over 50 million active individual and business customers as of March 31, 2019.