Kuwait’s leading telecom operator Zain has received a $1.3-billion non-binding offer from Invictus Holding Limited, an operating subsidiary of DAL Group, Sudan’s largest conglomerate, in exchange for a 100-percent stake in Zain Sudan and Kuwait Sudanese Holding Co.
DAL Group is a Sudan-based conglomerate with investments and active operations across several sectors, including food, engineering and agriculture. The group operates under the leadership of Sudanese business tycoon Osama Daoud Abdellatif.
According to a confirmation submitted by the telecom behemoth in a bourse filing, the board agreed to complete due diligence on the offer from Invictus Holding, a subsidiary of DAL Group.
Zain added that the offer does not include its investment and business in South Sudan, as it is specifically directed to take over its assets and stake in Zain Sudan and the Kuwait Sudanese Holding.
As the largest private enterprise in the country, the recent move by DAL Group to acquire the Kuwait Sudanese Holding and Zain’s business in Sudan, which is the country’s leading telecom providers, is a strategic attempt to broaden its portfolio in the country.
Osama Abdellatif, the chairman and founder of DAL Group, revealed that the move is strategic and demonstrates the conglomerate’s trust in the country’s economic prospects, as well as the growth potentials of the telecom sector.
“We are very bullish about Sudan and the future of Sudan, and we want to engage with the country on its journey to success,” Abdellatif said.
The offer comes at a time of economic difficulties in Sudan after it entered a state of hyperinflation in 2020, estimated to be in the vicinity of 270 percent.
The country has shown signs of recovery until a coup on Oct. 25 led to a freeze in international financing.
Information confirmed by Billionaires.Africa revealed that Zain Sudan reported its best performance ever since 2016 in 2020, despite the impact on revenues from the pandemic, estimated at approximately $11 million.
The leading telecom operator has a 49-percent market share and 16.6 million subscribers. It reported a 37-percent increase in revenue to $417 million due to several price revamps in 2020, while its net income increased by 23 percent to $61 million.
Zain Sudan also invested 26 percent of its revenue, or $110 million, in its operations, expanding and acquiring multiple spectrum bands to enhance its 4G LTE network across the country. Its mobile network currently covers 90 percent of the population across 2,814 network sites.
