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Thu 26 Oct 2017 01:27 PM

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Omantel signs $1.35bn deal to raise stake in Kuwait's Zain

Omani telco inks agreement to buy further 12.1% to become second largest shareholder

Omantel signs $1.35bn deal to raise stake in Kuwait's Zain

Oman Telecommunications, better known as Omantel has signed a share purchase agreement to buy a further 12.1 percent stake in Kuwaiti telco Zain for $1.35 billion.

The deal with Al Khair National for Stocks & Real Estate Company, Kuwaiti British Readymix Company, and Gulf National Holding Company will see the sale of 521,975,416 ordinary shares in Mobile Telecommunications Company (Zain).

Upon completion of the transaction following a formal block trade auction process under Boursa Kuwait rules, Omantel will become the second largest shareholder in Zain, a statement said.

Omantel said it will finance this transaction with a combination of long-term and bridge loan facilities. The bridge loan facility will subsequently be taken out through long-term capital markets instruments.

In August, Omantel purchased a 9.84 percent stake in Zain for $846 million.

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