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)
Follow us on
