Oman's government has announced that it is considering the partial sale of its shareholding in Oman Telecommunications (Omantel). The government is looking at selling a 25% stake to a strategic investor. In conjunction with such a sale, the Government may also consider providing the selected strategic investor with certain rights enabling it to increase its economic and voting exposure to Omantel in the future.
In a statement, the government said "whilst Omantel has maintained leadership across all telecom segments, the Government is seeking a strategic partner to further strengthen OmantelĂ's market position and establish Omantel as a world-class provider of telecommunications services both in the Sultanate and internationally."
H.E. Darwish Ismail Al Bulushi, Secretary General of the Ministry of Finance said, "The further privatisation of Omantel is another example of the GovernmentĂ's commitment to liberalising the economy and seeking to support the creation of world class Omani companies. The Omani telecom market still has excellent growth potential and Oman offers an attractive economic environment which we are certain will appeal to bidders."
The Government expects the sale to be concluded during 2008.
Omantel's market capitalization is approximately $4.4 billion.
Private investors own 21% in Omantel, while 9% of the shares are held by charitable organizations and the Omani Pension Fund.
Posted to the site on 7th July 2008
Posted to: www.cellular-news.com/story/32226.php