Omantel to sell 25% stake by year-end - CEO

STAKE SALE: Omantel plans to a sell 25% take to a long-term investor by the end of the year, Al-Wohaibi said. (Getty Images)

Omani telecom Omantel expects to sell a 25% stake to a long-term investor by the end of year, the company's chief executive said.

"We've appointed Citigroup as financial adviser for the sale of a 25% stake in Omantel," Mohammed Al-Wohaibi told newswire Reuters on the sidelines of a conference in Dubai.

The company has already started the process and expects to complete the sale by year-end, he said, declining to name companies that had shown interest.

UAE telecom Etisalat has previously said it would be interested.

The Omani government, which holds 70% of Omantel with the rest traded on the Muscat bourse, said in February it could sell up to 30% of the telecoms company though not to the public.

Last month, Omantel posted its biggest profit ever in the first quarter after paying less in royalties to its government owner as a share of revenue, and adding income from extra users.

Net income in the three months to March 31 surged 60% to 38.4 million rials ($99.74 million), compared with 24 million rials in the year-earlier period, the state-controlled firm said.

The government last year cut the royalties Omantel and its competitor, Nawras, affiliate of Qatari telecom Qtel, have to pay on mobile phone services to 7% from 12%, and for fixed line services to 7% from 10%. That saved Omantel as much as 14 million rials in 2007. (Reuters)

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