Omantel minority stake could soon be back on market

Oman’s minister of national economy said the government may restore its previous plan to sell a minority stake in Omantel to a long-term investor in 2010. Ahmed Mekki told press that 30 per cent equity could be on offer, compared to the original 25 per cent quoted when the sultanate received expressions of interest in 2008.

“We are waiting for the global market to recover so we can start looking for a strategic investor again for Omantel,” Mekki stated yesterday.

The ministry of finance cancelled the sale in January 2009, citing the decline in the world financial markets. The sale would have reduced the ministry’s stake from 70 to 45 per cent.

“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 at the time the tender process was called off.

STC and Etisalat had both expressed interest in acquiring the strategic stake in the Omani operator.

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, it faces increasing competition with the upcoming award of a ten-year universal licence, in addition to the second fixed line licence that was awarded to Nawras in November 2008, and five licensed resellers.