Oman Government To Sell 19% Stake In Omantel

Oman Government To Sell 19% Stake In OmantelThe Oman government is taking a second look at reducing its stake in the local telecoms operator, Omantel.

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

Following the latest announcement, the company’s existing share price fell by nearly 6 percent, wiping out all the gains made this year. The company 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 percent to 51 percent, so it will still have control over the company.

#global banking crisis# Oman government# omantel# Stake