Omantel plans to tap bridge loan facility for Zain shares

Oman Telecommunications (Omantel) plans to tap a bridge loan facility to fund the acquisition of a 9.84 percent stake at Zain, which was valued at $846.1 million (SR3.17 billion).
The loan would be taken through a long-term loan facility or combined with capital markets instrument, Omantel said in a disclosure to the country’s stock exchange.
“Both Moody’s Investors Services and S&P have confirmed Omantel’s current ratings post announcement with Moody’s qualifying further the transaction as credit positive,” the telecoms provider said.
Under the agreement signed earlier, Omantel will buy 425.7 million Zain treasury shares — or 9.84 percent — in cash at a price of 0.60 dinars ($1.99) per share during a public action scheduled tomorrow, August 24.
“Acquiring a minority stake in Zain is a deliberate investment for Omantel to position itself as a leading digital service provider,” the company said, which was in line with its corporate strategy of aiming for “growth and diversification.”
The transaction, once completed, would allow Omantel to expand its market to an additional nine countries with a population of about 175 million. Zain has a presence mostly in the Middle East and Africa, including Saudi Arabia, Iraq and Jordan.
Omantel was making a “deliberate investment” in Zain as part of its strategy to “position ourselves as a leading digital service provider,” Omantel’s Chief Financial Officer Martial Caratti earlier said.
Credit Suisse is acting as the exclusive financial adviser and Freshfields Bruckhaus Deringer as legal adviser to Omantel on the deal.

Source: Arab News