��������Ƶ

KUWAIT CITY: Oman Telecommunications Co. (Omantel) has won the bid to acquire 425.7 million treasury shares representing 9.84 percent of Zain’s fully paid in and issued share capital at an offer price of 0.60 Kuwaiti dinars ($1.99) per share, representing a total cash consideration of $846.1 million.
Zain and Omantel entered into a stock purchase agreement (SPA) on Aug. 10. This announcement triggered a formal block trade auction process under Boursa Kuwait rules.
A ceremony was held to mark the completion of the transaction. Officials of Zain, Omantel and Boursa Kuwait attended the function during which Boursa Kuwait’s efforts were lauded.
Bader Al-Kharafi, Zain vice chairman and group CEO, said: “We appreciate the professionalism and efforts of Boursa Kuwait and Omantel in this transaction, reflecting the confidence and strength of both the Kuwait equity market and in Zain’s business and digital growth strategy.”
Al-Kharafi added: “We welcome Omantel’s investment in Zain, and we look forward to exploring mutually beneficial synergies and opportunities across the region. The strategic visions of both Zain and Omantel complement each other.”
“The liquidity from this transaction brings many immediate and significant benefits to Zain as it enhances our financial flexibility as we continue to seek opportunities in the digital space and invest in upgrading our modern networks to enhance the mobile experience for our customers. Additionally, the deal allows us to reduce our debt levels as well as increasing our shareholders’ equity,” he said.
Talal Said Marhoon Al-Mamari, CEO, Omantel, said: “The global telecoms market is changing fast, and our region has not escaped this trend. Data and content are where growth lies and investing in innovative digital products are critical to building a stronger company.
“In this competitive environment, our acquisition of a minority stake in Zain Group is a strategic move for Omantel as we continue to deliver against our Corporate Strategy 3.0, create value for shareholders, diversify our revenue, raise our regional profile, and mitigate the risk of operating in a single market.”
Khaled Al-Khaled, CEO of Boursa Kuwait, said: “We congratulate the parties involved in this major investment that was completed on Boursa Kuwait in such a short period. Boursa Kuwait’s expertise in managing the auction was key to ensure a smooth, transparent and swift process. Today, this deal stands as an important indicator of the growing trust and confidence investors have in the Kuwait market. Boursa Kuwait will continue to develop the operations of this exchange in line with its three main pillars of efficiency, transparency and accessibility.”
The sale of Zain’s treasury shares was approved by its shareholders and the Capital Markets Authority (CMA) of Kuwait earlier this year.
The sale will now be executed and the treasury shares converted into common stock. Following this conversion, Omantel will hold 9.84 percent of Zain Group, with the corresponding voting rights and dividends attached to the common stock.
The transaction will be fully debt financed by Omantel. Citigroup Global Markets Limited served as the exclusive financial adviser and Meysan Partners as legal adviser to Zain. Credit Suisse acted as the exclusive financial adviser and Freshfields Bruckhaus Deringer LLP as legal adviser to Omantel.