Oman Telecommunications (Omantel) has announced it has completed the deal to buy 12.1 percent of shares in Mobile Telecommunications Company, better known as Zain, making it the second largest shareholder with a 21.9 percent 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, a statement said.
Talal Said Marhoon Al Mamari, CEO, Omantel, said: “This is an historical moment for Omantel and Zain. Together, we have created a new regional telecoms group that will drive the digitisation of Oman and the wider region.
"Our new scale and diversification will allow us to focus on digital transformation, to generate further revenue growth and accelerate the introduction of innovative products and services that will enable our region to digitize.
"We expect that the new group will enjoy a positive, long-term economic outlook and a robust base from which we can grow even further together. This is the right partnership to take our businesses to the next level and we are excited about our combined prospects within the exciting region in which we operate.”
The total equity value of the 21.9 percent shareholding is $2.19 billion, Omantel said, adding that it has financed this transaction with a combination of long-term and bridge loan facilities.
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