Business | Telecoms
Muscat seeks bids to sell 25% of Omantel
The Government of Oman on Monday said it has invited bids to sell 25 per cent shares of Omantel - the country's largest telecom operator.
- Staff Report
- Published: 00:09 July 8, 2008
Dubai: The Government of Oman on Monday said it has invited bids to sell 25 per cent shares of Omantel - the country's largest telecom operator.
"The government invites the submission of expressions of interest from suitably qualified strategic partners with respect to participating in a process leading to the sale of an interest representing 25 per cent of Omantel's issued shared capital," Oman's Ministry of Finance said in an e-mailed statement, acting on behalf of the government.
"In conjunction with such a sale, the government may also consider providing the selected strategic partner with certain rights enabling it to increase its economic and voting exposure to Omantel in the future."
Whilst Omantel has maintained leadership across all telecom segments, the government is seeking a strategic partner to further strengthen Omantel's market position and establish Omantel as a world-class provider of telecommunications services both in the Sultanate and internationally.
Liberalisation efforts
Darwish Esmail Al Bulushi, secretary-general of the Ministry of Finance, said: "The further privatisation of Omantel is another example of the government'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."
Citigroup Global Markets Limited, as lead advisor, and National Bank of Oman, as local advisor, are acting as financial advisors to the government in connection with the proposed sale.
The government expects the sale to be concluded during 2008.
Omantel is the sole fixed line service provider in Oman with 270,000 subscribers in 2007. It is the market leader in mobile communications in the country, with 1.49 million subscribers, representing a 60 per cent market share, in 2007. Omantel has grown strongly between 2005-2007, with subscribers growing by 14 per cent combined annual growth rate (CAGR), revenues by 16 per cent CAGR to $950 million, net profits by 21 per cent CAGR to $502 million and net income by 29 per cent CAGR to $293 million.
Omantel underwent partial privatisation in 2005 when it was listed on the Muscat Securities Market. The government currently retains a 70 per cent stake with 21 per cent held by private investors and nine per cent held by charitable organisations and Omani pension funds. Omantel's market capitalisation is approximately $4.4 billion (as of July 2, 2008).
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