Omantel has entered into US$846 million deal to acquire a nearly 10 per cent of the Kuwait-based regional operator Zain Group, which operates in eight countries in the Middle East and Africa, including Saudi Arabia, Iraq and Jordan.
The investment of the minority stake in Zain is part of Omantel’s strategy to diversify its exposure. Zain is expected to use the proceeds for prepayment of certain debt obligations.
The sale of treasury shares of Zain was approved by its shareholders and the Capital Markets Authority of Kuwait earlier this year and the current transaction has been approved by the Board of Directors of both Zain and Omantel.
The transaction is subject to certain other regulatory approvals and processes including the approval of Boursa Kuwait and is expected to close in the third quarter of 2017.