MUSCAT, Oct. 26 (Xinhua) -- Oman Telecommunications Company (Omantel) has signed an agreement to acquire an additional 12.1-percent stake in Kuwait-based Mobile Telecommunications Company with three firms, said a press release on Thursday.
The Omani telecom service provider signed the share purchase agreement with Kuwaiti British Readymix Company, Al Khair National for Stocks & Real Estate Company, and Gulf National Holding Company.
These three companies will collectively sell a total of 521.97 million shares at a price of 1.35 billion U.S. dollars.
With almost 10-percent stake in Zain Group for 845 million dollars Omantel acquired in August, the total transaction value will hit 2.19 billion dollars, said the statement.
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. In addition, the Board of Directors of Zain is expected to be reconstituted.
Omantel 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, said the statement. Enditem
A single purchase
