Vodafone Qatar has agreed to acquire 100% of state-owned Qatar National Broadband Network (QNBN) to boost its presence in the fixed-line market.
The deal size has not been disclosed but reports have estimated QNBN is worth about QR210m…
Vodafone Qatar has agreed to acquire 100% of state-owned Qatar National Broadband Network (QNBN) to boost its presence in the fixed-line market.
The deal size has not been disclosed but reports have estimated QNBN is worth about QR210m (US$57.6m).
Vodafone Qatar expects the transaction to close by the end of the year.
“Completion of the transaction is conditional upon regulatory approvals and consents, completion of due diligence, agreement on the consideration payable, the arrangement and provision of funding to finance the acquisition and entry into a definitive share purchase agreement,” it said in a statement yesterday.
The company added that it does not believe the relationship between the parties produces any conflict of interest.
Commenting on the rationale behind the deal, Qatar’s second and smallest mobile player said: “Vodafone Qatar believes that the transaction will be a major contributor towards the achievement of the policy objectives laid down in the national broadband plan and underlines Vodafone Qatar’s commitment to delivering world class telecommunications services to Qatar.”
QNBN was set up in 2011 and started rolling out a dark fibre network across the country in 2012 open to all telecoms services providers. It expects to complete construction by 2015.
Vodafone Qatar provides both mobile and fixed-line services. It is 23%-owned by the UK’s Vodafone Group while Qatari institutions hold 37%. The remaining shares are in free float.
The country’s largest mobile operator is Ooredoo.
