South Korea’s KT Corp has withdrawn from the bidding process for a stake in state-owned Tunisie Telecom.
In an email, a spokesperson for the telco confirmed the information but did not disclose why it walked away from the discussions.
KT Corp…
South Korea’s KT Corp has withdrawn from the bidding process for a stake in state-owned Tunisie Telecom.
In an email, a spokesperson for the telco confirmed the information but did not disclose why it walked away from the discussions.
KT Corp announced in September last year that it was in early talks to acquire 35% of the Tunisian operator from Emirates International Telecommunications (EIT), a conglomerate controlled by Dubai’s monarch.
Up to 10 companies were reportedly also in the race for the stake valued at around US$650m, including UAE’s Etisalat, Turk Telekom and Turkcell of Turkey, and Libya’s Lap GreenN.
EIT bought its stake for US$2.25bn in 2006 when the Tunisian operator was partially privatised. But following the uprisings in the country in 2011, the telco experienced financial difficulties.
Credit Suisse is handling the transaction, which would help EIT cut its debt. The conglomerate said in October last year that the Tunisie Telecom deal would complete within months.
The development is another setback for KT, which has been looking to expand abroad, principally in Africa, as it struggles to grow further in its saturated home market.
In November, South Africa’s Telkom ditched a prospective deal with the Korean telco to sell its ISP unit iWayAfrica.
Before that, KT Corp had decided against bidding for a 53% stake in Vivendi’s Maroc Telecom, citing valuations differences.
In 2012, it failed to acquire 20% of Telkom after the South African government blocked the deal.
However, it has had some success in Rwanda, entering a joint venture company with the government to provide 4G LTE wholesale infrastructure for MVNOs in the country.