Oman Telecommunications said it has won the bid to acquire 12.1 per cent of the issued share capital in top Kuwaiti telecommunications company Zain, thus making it the second largest shareholder in Zain Group with a 21.9 per cent stake.

The acquisition from Al Khair National for Stocks & Real Estate Company creates a new digital telecom powerhouse capable of leading digital transformation across the Middle East and North Africa (Mena) region, said a statement from Omantel.

With this move, it will be the third largest combined telecoms group in the region, with 52 million customers, it added.  

Omantel CEO Talal Said Marhoon Al Mamari said: "This is an historical moment for Omantel and Zain. Together, we have created a new regional telecoms group that will drive the digitisation of Oman and the wider region."

"Our new scale and diversification will allow us to focus on digital transformation, to generate further revenue growth and accelerate the introduction of innovative products and services that will enable our region to digitize," noted Al Mamari.

"We expect that the new group will enjoy a positive, long-term economic outlook and a robust base from which we can grow even further together. This is the right partnership to take our businesses to the next level and we are excited about our combined prospects within the exciting region in which we operate," he added.

Omantel said it had financed 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.

Credit Suisse acted as exclusive financial adviser and Freshfields 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.-TradeArabia News Service