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M1 to buy 15% stake in Oman telco for S$10.3 million
M1 plans to acquire a 15 per cent stake in a niche private telco in Oman for three million Omani rial (S$10.3 million) to help the target become a full-service telecommunication provider.
The Singapore telco will pay for the investment in Integrated Telecommunications Oman (TeO) with internal funds. TeO is a private international gateway operator and a mobile services reseller that sells its services under the Telecom Oman brand.
"This agreement marks the beginning of our relationship with TeO as we work together to achieve the common aspiration for TeO to become a leading full-service telecommunication provider in Oman," M1 chief executive Karen Kooi said in a statement.
The acquisition is subject to several conditions, including regulatory approvals in Oman and an injection of equity into TeO by its existing Omani shareholders. However, M1 said that it had met with Oman's Telecommunications Regulatory Authority, and the regulator "sees the investment as a very positive step towards further development of the telecommunications sector in Oman".
M1 shares last traded at S$3.52 on Wednesday before the announcement.