Oman government looks to sell 19% stake in Omantel

The Oman government is taking a second look at reducing its stake in the local telco, Omantel.

The government has said that it plans to sell a 19 per cent stake in the company, which is less than the aborted attempt to sell 25 per cent back in 2008. That sale was cancelled following the global banking crisis.

Following the latest announcement, the company’s share price fell by nearly six per cent, wiping out all the gains made this year.

Omantel is worth around US$3.1 billion, so the government should end up with nearly US$600 million from its share sale.

Following the sale, the government will reduce its stake from 70 per cent to 51 per cent.