Omantel board approves World Call deal

Oman Telecommunications (Omantel) said on Wednesday its board had approved a proposal to acquire a majority stake in Pakistani operator World Call.

The deal is still subject to approval by World Call shareholders and regulatory authorities in Pakistan, Omantel said in a statement.

Omantel told Reuters in August it expected to conclude a deal to buy 65% of the operator by the end of August.

The deal would allow Omantel to gain a foothold in the world's third-fastest growing telecom market. Omantel initially expected to conclude the purchase of a majority stake in the wireless local loop operator in June.

Shares of World Call, which also offers long distance telephone services, have almost doubled in value this year.

Omantel, the country's second-largest company by market value, is bracing for the end of its fixed-line monopoly this year, two years after the government opened the mobile business to competition.

About 65% of Oman's 2.5 million residents have mobile phones compared with about 33% in Pakistan, with a population of 160 million, Shuaa Capital telecom analyst Marc Hammoud said in June.

Omantel shares closed 2.1% up on Wednesday.

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