Omantel has announced plans to acquire a minority stake in Kuwait's Zain Group for $846m.
The Omani telco plans to take a 9.84% stake in Zain Group, to help diversify its business and develop co-operation with Zain.
Martial Caratti, Chief Financial Officer, Omantel, said: "Acquiring a minority stake in Zain is a deliberate investment for Omantel as we position ourselves as a leading digital service provider. This is in line with our Corporate Strategy 3.0, launched in 2015. We have always emphasised that growth will come from continued diversification, and this acquisition positions Omantel for the future."
In a company statement, Omantel said that the deal will improve profitability and enhance value for shareholders, and that the telco will explore options for cost synergies through operational cooperation and capital expenditure.
Omantel also plans to explore co-operation with Zain in key areas including wholesale telecom business, operations and networks, along with commercial activities and knowledge sharing. It will also allow Omantel to gain exposure to nine growth markets with a total population of 175 million, and provide significant growth drivers across a range of services and applications.
The deal is subject to regulatory approval.