Iraqi mobile operator Korek Telecom has selected France Telecom as its preferred bidder, beating out fellow suitor MTN, according to Telegeography citing MEED.
Spokespeople for France Telecom and Korek Telecom were not available by press time.
The 35% to…
Iraqi mobile operator Korek Telecom has selected France Telecom as its preferred bidder, beating out fellow suitor MTN, according to Telegeography citing MEED.
Spokespeople for France Telecom and Korek Telecom were not available by press time.
The 35% to 39% stake up for grabs in the Iraqi telco has been valued at US$1.5bn.
France Telecom is already present in Jordan, Egypt, Tunisia and Morocco. It is one of five prequalified bidders in the auction for Syria’s third mobile licence, and this month announced an agreement to pay E640m for a 40% stake in Meditel, Morocco’s number two operator. Earlier this year, the operator said it was planning to double its revenue in emerging markets – primarily Africa and the Middle East – in the next five years.
Earlier this month, Korek shareholder Agility Logistics stated publicly that it had yet to receive a formal takeover bid from either party, adding that it remained hopeful of a “suitable” offer.
Korek is the country’s number three player behind Zain Iraq and QTel-owned AsiaCell, having paid US$1.25bn for a third licence in 2008. According to Arab Advisors Group, Iraq has a mobile penetration level of 75%.
Etisalat reportedly pulled out of a bid on Korek some two years ago, branding the price tag too high.
Agility agreed a US$250m option to buy a stake in Korek in September 2007. Korek is a private company that is based Ebril in the northern Kurdish region of the country.
The company operates in the Kurdish regional capital, Ebril, and the province of Duhok.
