OBIC buys major Renna stake

Muscat - 

Oman Brunei Investment Co (OBIC) has acquired a majority stake in Renna Mobile, an Oman-based mobile virtual network operator (MVNO). Renna believes that the 'significant' capital infusion will boost the company's expansion plans in Oman and regional markets.

Speaking at a press conference on Tuesday, Joakim Klingefjord, CEO of Renna, said that the company has finalised an investment agreement with OBIC to secure its growth plans in Oman and beyond.

“OBIC scrutinised several other similar investment opportunities before it decided in our favour. We are closely monitoring GCC and MENA markets for expansion. We are at a preparatory stage in a few of these markets in the region, and plan to do business plan analyses, understand regulatory frameworks, licence application terms and hold discussions in some of them.”

Klingefjord said that in Oman the company will focus on mobile broadband which is an area of growth in the telecom sector.

“In Oman, we want to focus on the customer base we have already acquired. We are looking forward to providing our existing customers with a number of innovative offers and promotions in the very near future,” he added.

OBIC is an Oman-based private equity firm which is a joint venture between the governments of Brunei and Oman. Oman's State General Reserve Fund and the Brunei Investment Agency, the sovereign wealth fund of Brunei, both own 50 per cent stakes in OBIC.

OBIC chief executive Abeer Mohamed al Abduwani said that OBIC, as the new majority stakeholder, is investing in Renna to support its expansion plans in Oman and abroad.

However, it was not disclosed that how much capital OBIC will inject into Renna.

Abduwani said, “OBIC will hold a majority stake in Renna. Whenever we undertake an investment we go through a very strict due-diligence process. In this case, we noticed that Renna has the ability to grow in the local and regional telecom sectors. It has built a strong brand and a healthy customer base, while maintaining a very prudent and cost-conscious approach to its operations.”

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