Omantel has announced that it has acquired a 40 per cent stake in Majan Telecommunication LLC (Renna Mobile), one of the first mobile virtual network operators (MVNO) in Oman.
Omantel has signed a definitive share purchase agreement with Integrated Telecommunications Oman (TeO) whereby Omantel purchased 40 per cent shares in Renna Mobile. In a disclosure to the Muscat Securities Market, Omantel clarified that the total consideration of the transaction is RO5mn.
Last year, the sultanate’s Telecommunications Regulatory Authority (TRA) had proposed permitting a higher percentage of holding in MVNO businesses by the host operator.
‘The transaction is underpinned by a vision of both the parties to chart a course of robust growth for both entities who have a long history of mutually beneficial growth and collaboration which has introduced innovative and appealing products and services to all segments of the Omani society’, Omantel said in its market disclosure.
The company added that this transaction is expected to take Omantel and Renna Mobile’s collaboration to new heights and long term value creation to their shareholders and subscribers.
Renna Mobile was established in 2007 and is considered one of the first mobile services resellers licensed in the sultanate and currently enjoys the highest market share among MVNOs. TeO had acquired 100 per cent shares of Renna Mobile in 2016.
TeO is Oman’s first private Class I international gateway operator, a mobile virtual network operator and an over-the-top (OTT) service provider.
As per the TRA’s latest statistics, the total number of prepaid mobile subscribers in Oman stood at 5,864,742 as of April 2019, of which mobile resellers or MVNOs account for 745,439 subscribers.
Source: https://muscatdaily.com/Archive/Business/Omantel-acquires-40-stake-in-Renna-Mobile-5eps