Qatar Telecom (Qtel) has made an offer to take full control of Kuwait’s National Mobile Telecommunications (Wataniya Telecom) in a deal worth about US$1.9bn.
The Qatari incumbent currently already owns a 52.5% stake in Wataniya, which has a market…
Qatar Telecom (Qtel) has made an offer to take full control of Kuwait’s National Mobile Telecommunications (Wataniya Telecom) in a deal worth about US$1.9bn.
The Qatari incumbent currently already owns a 52.5% stake in Wataniya, which has a market cap of US$3.97bn.
Kuwait’s Capital Markets Authority (CMA) said in a statement to the local bourse that shares in Wataniya will remain suspended until it reaches a decision on the takeover offer, but provided no further details. The proposed deal is subject to the regulator’s approval.
Doha-based Qtel has mandated Barclays Capital and the investment banking division of National Bank of Kuwait to advise it on the transaction, Reuters reported, citing an unidentified source with direct knowledge of the situation.
Qtel bought its current stake in Wataniya in 2007 for about US$3.7bn. Kuwait Investment Authority, the state’s sovereign wealth fund, is the second largest shareholder with a 23.5% stake, while the rest of the shares are publically held.
Qtel has set itself the target of becoming one of the world’s top 20 telcos by 2020. Group CEO Nasser Marafih told TelecomFinance earlier this year that the company plans to grow organically as well as via acquisitions and stake increases in companies in which it has existing holdings.
Earlier this month, Qtel agreed to double its stake in Iraqi mobile operator Asiacell to 60% in a deal worth US$1.47bn.
