Zain and Omantel Complete Treasury Share Sale on Boursa Kuwait for USD 846.1 million

Mobile Telecommunications Company ("Zain") and Oman Telecom (" Omantel") are pleased to introduce that Omantel has actually won the quote to acquire 425.7 million treasury shares standing for 9.84% of Zain's totally paid in and released share funding at a deal price of KWD 0.600 per share, representing a complete cash money factor to consider of USD 846.1 million (KWD 255.4 million/ OMR 325.6 million). This statement comes after a public auction process taken care of by the Boursa Kuwait.

As announced on 10 August 2017, Zain and Omantel participated in a share acquisition contract ("SPA") for Zain's treasury shares. This news set off a formal block trade auction process under Boursa Kuwait guidelines, which completed this mid-day and finished in a ceremony hosted by Boursa Kuwait to note the effective closing of the transaction. The ceremony was held in the presence of the Zain Vice-Chairman and Group Chief Executive Officer, Bader Nasser Al-Kharafi; Chief Executive Officer of Omantel, Mr. Talal Said Al Mamari; and Chief Executive Officer of Boursa Kuwait, Khaled Al Khaled. Participating celebrations lauded the smooth procedures and processes in Boursa Kuwait.

Bader Al-Kharafi, Zain Vice Chairman and Group Chief Executive Officer, stated:" We appreciate the professionalism and efforts of Boursa Kuwait and Omantel in this purchase, mirroring the self-confidence and stamina of both the Kuwait equity market and in Zain's business and digital development technique.

We invite Omantel's investment in Zain, and we eagerly anticipate checking out mutually valuable synergies and business boosting possibilities across the region. The strategic visions of both Zain and Omantel enhance each various other as do our societies, and we are positive that this deal is value-enhancing to all our stakeholders on multiple fronts.

The liquidity from this purchase brings lots of instant and considerable benefits to Zain as it boosts our monetary flexibility as we continuously seek opportunities in the digital space and purchase updating our modern networks to boost the mobile experience for our customers. In addition, the deal enables us to lower our debt levels along with raising our shareholders' equity."

Talal Said Marhoon Al Mamari, Chief Executive Officer, Omantel, said: "The global telecoms market is transforming quick, and our region has not left this trend. Data and material is where development lies and purchasing innovative digital products is crucial to developing a stronger company.

In this affordable setting, our purchase of a minority stake in Zain Group is a calculated step for Omantel as we continuously supply versus our Company Approach 3.0, produce worth for investors, diversify our profits, increase our regional profile, and mitigate the threat of operating in a solitary market.

Omantel is the incumbent player in Oman, with experience in dealt with, mobile and high speed broadband networks and wholesale procedures. We have long appreciated Zain for their deep digital know-how and regional impact which is highly corresponding to ours. Structure on our corresponding toughness, we believe that together we could increase collaboration and innovation to eventually provide far better services and content for our customers in Oman and the region, currently and for the future.".

Khaled Al-Khaled, CEO of Boursa Kuwait, said: "We congratulate the events involved in this major financial investment that was completed on Boursa Kuwait in such a brief time period. Boursa Kuwait's know-how in managing the public auction was key to guarantee a smooth, clear and quick procedure. Today, this deal stands as an important sign of the expanding count on and self-confidence financiers have in the Kuwait market. Boursa Kuwait will continue to create the procedures of this exchange in line with its 3 major columns of effectiveness, transparency and accessibility".

The sale of treasury shares of Zain was approved by its investors and the Capital Markets Authority of Kuwait earlier this year and the current purchase has actually been approved by the Board of Supervisors of both Zain and Omantel.

The sale will currently be carried out and the treasury shares exchanged ordinary shares. Following this conversion, Omantel will certainly hold 9.84% of Zain Group, with the matching ballot rights and returns attached to common stock.

The deal will certainly be totally financial debt funded by Omantel. S&P and Moody's have actually maintained Omantel's ratings of "BB+/ Negative/ B" and "Baa2 adverse," respectively, following the news of the deal on 10 August 2017. Citigroup Global Markets Limited functioned as unique financial consultant and Meysan Allies as legal advisor to Zain. Credit Suisse served as exclusive financial adviser and Freshfields Bruckhaus Deringer LLP as counsel to Omantel.