UAE-based telecoms group Etisalat may consider increasing its stake in Saudi Arabia’s Mobily to boost its revenues, CEO Ahmad Julfar was quoted telling Reuters.
Etisalat controls 27.4% of the Saudi carrier, making it the largest single shareholder….
UAE-based telecoms group Etisalat may consider increasing its stake in Saudi Arabia’s Mobily to boost its revenues, CEO Ahmad Julfar was quoted telling Reuters.
Etisalat controls 27.4% of the Saudi carrier, making it the largest single shareholder. Approximately 20% is in free float.
Raising its stake in Mobily could allow Etisalat to increase value for its shareholders as well as contributing to the social and economic development of Saudi Arabia, Julfar said.
And the Saudi operator could consider applying a similar strategy to several of its other subsidiaries, he added. Overall, Etisalat has a footprint in 18 countries across the Middle East, Africa, and Asia.
Etisalat is also looking to restructure its assets, including merging, selling or outsourcing some of its operations, in an attempt to cut costs.
The company reported a 23% drop in its net profit to AED5.8bn (US$1.6bn) in 2011 compared to 2010. Etisalat blamed the impairment charge on its Indian joint venture Etisalat DB, which it has decided to shut down, for this decline.
Julfar also reportedly said that Deutsche Bank has been hired to help sell a stake in Atlantique Telecom, which operates in West Africa. Potential buyers have already been found.
However, unlike earlier reports, Etisalat has decided against divesting Indonesian mobile operator XL Axiata for the moment because of the company’s good performance.
