MUSCAT
Oman Telecommunications Co. (Omantel) on Thursday announced a $1.35 billion deal for a stake in Kuwaiti telecoms firm Zain, a move that sees it expand its holding to become the second-biggest shareholder.
Oman’s biggest telecoms provider signed an agreement to buy the 12.1 per cent stake from firms owned by the Kuwaiti Al Kharafi family, statements from the two sides said. The purchase — which is expected to go through next month — will take Omantel’s overall holding in Zain to 21.9 per cent, bolstering its attempts to increase its footprint across the region.
Majority state-owned Omantel in August acquired a 9.8-per cent stake in Zain for $847 million.
Zain currently has a market valuation of $13.7 billion.
The largest shareholder in the company will remain the Kuwaiti government, which owns 24.6 per cent of the country’s largest mobile operator.
