MUSCAT — Oman Telecommunications S.A.O.G announced it has won the bid to acquire 12.1% of the issued share capital in Mobile Telecommunications Company KSCP (Zain), making Omantel the second largest shareholder in Zain Group with a 21.9% stake.

The acquisition creates a new digital telecom powerhouse capable of leading digital transformation across the MENA region. The new group will be the third largest combined telecoms group in the MENA region, with 52 million customers.

On Oct. 26, 2017, Omantel entered into a share purchase agreement (SPA) to acquire 521,975,416 million ordinary shares representing 12.1% of the total fully paid and issued share capital from Al Khair National for Stocks & Real Estate Company W.L.L., Kuwaiti British Readymix Company W.L.L., and Gulf National Holding Company K.S.C.C. (collectively the ‘Sellers’) for a total cash consideration of $1.35 billion. This announcement triggered a formal public auction process under Boursa Kuwait rules, which completed today, marking the successful closing of the transaction. In addition, the Board of Directors of Zain is expected to be reconstituted.

The total equity value of the 21.9% shareholding is US$ 2.19 billion (OMR 845 million). This includes the previously announced acquisition on the 24 August 2017 of 425.7 million treasury shares representing 9.84% of the total fully paid and issued share capital.

Omantel has financed this transaction with acombination of long-term and bridge loan facilities. The bridge loan facility will subsequently be taken out through long-term capital markets instruments.

Credit Suisse acted as exclusive financial adviser andFreshfields Bruckhaus Deringer LLP as legal adviser to Omantel.

Credit Suisse and Citi are acting as Bookrunners, Mandated Lead Arrangers and Original Lenders; with Bank Muscat, HSBC and Standard Chartered Bank and Bank ABC as Bookrunners and Mandated Lead Arrangers in the acquisition financing. — SG