Omantel signs agreement to buy additional 12.1 per cent stake in Kuwait's Zain for OMR520m

Muscat: A share purchase agreement to acquire an additional 12.1 per cent stake in Kuwait's Mobile Telecommunications (Zain) Company was signed by Oman Telecommunications Company (Omantel) with three stake holders of the Kuwait telecom firm.
The majority state-owned Omantel signed the agreement with Al Khair National for Stocks & Real Estate Company, Kuwaiti British Readymix Company, and Gulf National Holding Company to acquire a total of 521.97 million shares for OMR520 million. The offer price per share is 0.781 Kuwaiti dinar, said a joint press release issued on Thursday.
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.
The Omani telecom service provider has acquired a 9.84 per cent stake in Zain Group in August.
The total transaction value for the 21.9 per cent stake is OMR845 million.
"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," added the statement.
Credit Suisse are acting as financial adviser and Freshfields Bruckhaus Deringer LLP are acting as legal adviser to Omantel.
Credit Suisse and Citi are acting as Bookrunners, Mandated Lead Arrangers and Original Lenders; with Bank ABC, Bank Muscat, HSBC and Standard Chartered Bank as Bookrunners and Mandated Lead Arrangers in the acquisition financing.