Finance ministry cancels sale of equity stake in Omantel

Oman’s ministry of finance has cancelled the sale of 25 per cent of Omantel, citing the decline in world financial markets. The sale would have reduced the ministry’s stake from 70 to 45 per cent.  

The ministry received expressions of interest in July 2008 and had planned to complete the process by the fourth quarter of last year.

“Despite the solid progress we have made with the sale process to date, and the continued strong interest shown by the bidders, the unprecedented market volatility and economic conditions that we are seeing globally has led to the government taking the prudent decision to stop the sale process,” stated the ministry’s secretary general, Darwish Esmail Al Balushi.

Saudi Arabia’s STC and the UAE’s Etisalat had both expressed interest in acquiring the strategic stake in the Omani operator. At the time the bids were received in July, 100 per cent of the company was valued at US$4.4 billion, but now the operator is worth considerably less.

Omantel is the sultanate’s incumbent unified operator providing fixed-line and Internet services under the parent company, and mobile services under the brand Oman Mobile. However, the provider began a process of reintegration in February last year, and plans to launch a new brand and unified corporate identity in the first quarter of 2009.