The Omani government is looking to sell a 19% stake in incumbent Omantel in two stages to local individuals and investors, according to a finance ministry official.
Saud al Shukaily, secretary general for taxation at the finance ministry and chairman of…
The Omani government is looking to sell a 19% stake in incumbent Omantel in two stages to local individuals and investors, according to a finance ministry official.
Saud al Shukaily, secretary general for taxation at the finance ministry and chairman of the supervisory committee overseeing the Omantel sale, told Muscat Daily that OR2m (US$5.2m) worth of shares will be sold in a private placement to Omani individuals and institutional investors, while the remaining stock will be divested in a public offer open to Omani individuals.
The whole process, which will see the government’s stake in Omantel reduced from 70% to 51%, is expected to be completed within the next eight to ten weeks given “the favourable liquidity in the economy, and investor interest in Omantel”, he said.
A total of 142.5 million shares are expected to be sold. The pricing has not been disclosed but at the time of going to press (5 February), Omantel had a market capitalisation of OR1.17bn (US$3.04bn), valuing the 19% stake at US$577.6m.
The government first disclosed plans to offload a stake in September last year. A few weeks later, it mandated Bank Muscat as financial adviser on the process.
Omantel operates fixed and mobile services in Oman. It also owns Worldcall Telecom, which provides wireless local loop, long distance international, payphones and cable television services in Pakistan and Sri Lanka.
