Saudi Arabia’s Etihad Etisalat (Mobily) is in talks to acquire a stake in local fixed-line operator Etihad Atheeb Telecom (Go) via one of its subsidiaries.
Go said in a short stock exchange filing that talks are at a preliminary, non-binding stage and…
Saudi Arabia’s Etihad Etisalat (Mobily) is in talks to acquire a stake in local fixed-line operator Etihad Atheeb Telecom (Go) via one of its subsidiaries.
Go said in a short stock exchange filing that talks are at a preliminary, non-binding stage and that relevant developments will be announced by 30 June.
Mobily said in its own filing yesterday (2 June) that it was considering entering talks to acquire an interest in Go.
Go and Mobily signed a Memorandum of Understanding in December last year for the former to provide the latter with fixed voice services.
Yesterday, both Mobily and Go stated that they were continuing negotiations concerning the MoU “in order to explore a wider level of cooperation”.
In its statement today, Mobily did not say what size stake it is targeting, who the potential seller is or how much it might pay.
A Mobily spokesperson was unable to provide further details.
Go’s largest shareholders are Atheeb Trading Company with a 16.4% stake, Bahrain Telecommunications Co (Batelco) with a 15% stake, Al Nahla Group with a 13.9% and Traco Trading and Contracting with a 5.9% stake. The remaining shares are publically traded.
