Omantel approves $35m guarantee

Omantel approves thirty five million dollar guarantee to imporove Worldcall's financial health under a 5-year plan.

KARACHI:
Oman Telecommunica-tion (Omantel), the parent company of WorldCall Telecom Limited (WTL), has approved the issuance of corporate guarantee to a third party for providing $35 million to improve the financial health of its subsidiary under a five-year plan.

In March this year, Omantel’s board had granted approval for developing a strategy for rescuing the subsidiary and appointed a consultant firm to assess the operations and suggest steps to improve its performance, according to a notice sent to the Karachi Stock Exchange on Monday.


WTL had requested for a funding of $70 million to meet its capital expenditures. Omantel has a stake of 56.8 per cent in WTL acquired for 72 million Omani riyals.

Published in The Express Tribune, December 21st, 2010.
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