Saudi operator Etihad Etisalat (Mobily) has signed a memorandum of understanding with some of the founding shareholders of local fixed-line operator Etihad Atheeb Telecom (Go) to acquire a controlling stake in the company.
Under the MoU, the proposed…
Saudi operator Etihad Etisalat (Mobily) has signed a memorandum of understanding with some of the founding shareholders of local fixed-line operator Etihad Atheeb Telecom (Go) to acquire a controlling stake in the company.
Under the MoU, the proposed transaction is subject to certain conditions being fulfilled by 30 November, including regulatory approvals, due diligence and the parties executing a definitive deal agreement, Mobily said in a stock exchange notice.
The MoU was inked with Atheeb Trading Company, which has a 16.4% stake in Go, Al Nahla (13.9%), Traco Trading and Contracting (5.9%) and the Saudi Internet Company, which has an undisclosed interest in the fixed-line operator.
Bahrain-based Batelco owns 15% of Go while the remaining shares are listed.
If successful, the transaction will see Mobily, an affiliate of UAE’s Etisalat, acquire the Go stake via its data subsidiary Bayanat. The estimated deal value has not been disclosed and Mobily was not immediately available for comment.
