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Oman's government offloads 19% stake in Omantel for USD 530mn [IntelliNews - Weekly Reports]
[April 24, 2014]

Oman's government offloads 19% stake in Omantel for USD 530mn [IntelliNews - Weekly Reports]


(IntelliNews - Weekly Reports Via Acquire Media NewsEdge) The Omani government generated roughly OMR 204mn (USD 530mn) from a two-phased sale of a 19% stake in the country's largest mobile operator, Omantel, according to a Muscat bourse statement. The divestment brought down the government's ownership in Omantel to 51%.



The sale included a private placement for institutions and wealthy individuals that was completed in March. It was 1.99 times subscribed and attracted bids ranging from OMR 1.50 to OMR 1.90 per share. The second tranche was a public offer for retail investors that closed on April 13 and was 1.05 times subscribed.

Oman had 5.62mn mobile phone subscribers at end-2013, marking a 6.4% y/y increase and translating into a 153% penetration rate. Pre-paid subscribers accounted for the bulk at 5.12mn (91% of the total), up 6.4%. Oman's two mobile operators, Omantel and Nawras had a total of 4.56mn pre-paid users and resellers had 568,444. Nawras is an affiliate of Qatar Telecommunications (Qtel).


The government owns more than 60 companies across various economic sectors and some of those firms are well-established with good profit and strong performance, according to finance minister Darwish al-Balushihe. The government's two-fold privatization strategy implies allowing the private sector venturing into new projects and reducing the public-sector's stakes in companies that are fully or partially state-owned, Balushi said.

Among the firms slated for privatisation is also the national airliner Oman Air.

The IMF has warned that Oman's fiscal situation might deteriorate over the medium term. Oman's state budget might slip into a 3.8% of GDP deficit by 2015, the IMF forecast. The government's privatisation plans might thus be part of a medium-term consolidation program.

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