Virgin Mobile consortium to list shares in Oman

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Virgin Group founder Richard Branson

Virgin Group founder Richard Branson

A consortium that includes Virgin Mobile Middle East & Africa (VMMEA) will list its shares on the Oman bourse within five years as a condition of winning a licence to provide telecom services in the Gulf Arab state.

Connect Arabia International (CAI) was awarded a 15-year licence that will require the company to sell 40 percent of its shares through an initial public offering on Muscat's bourse, the Telecommunications Regulatory Authority said in an email.

The licence will cost OR20,000 ($51,900), the regulator added.

In the Gulf, telecoms licences are sometimes awarded for minimal fees to encourage buyers to invest in developing their services.

VMMEA chief executive Mikkel Vinter said his company was part of a consortium that owns CAI, but he declined to reveal the size of its holding.

VMMEA, part-owned by British entrepreneur Richard Branson's Virgin Group, is a mobile virtual network operator (MVNO).

These typically lease capacity from established operators and pay them a percentage of their revenue as well as fees.

Oman is the only Gulf country where MVNOs have started operations. These compete with the sultanate's two conventional telecom operators, Omantel and Nawras, a unit of Ooredoo.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Risky business

Risky business

Libya’s stock market is one of the smallest in the Arab world...

'The gold rush is over'

'The gold rush is over'

Many blue chips are reviewing their emerging-market strategies...

Money talks for Gulf SWFs

Money talks for Gulf SWFs

The Gulf’s oil-rich sovereign wealth funds are seeking to increase...

2
Most Discussed