Batelco Buys Jordanian Operator

Bahrain Telecommunications Company (Batelco) has agreed to buy the Jordanian network operator, Umniah Mobile Communications (UMC) for US$415 million. The company is buying 96% of the operator. The Underprivileged Student Support Fund in Jordan's universities will retain the remaining 4% equity in Umniah.

Umniah is the latest GSM mobile operator in Jordan offering nationwide coverage with over 460 base stations across the Hashemite Kingdom of Jordan and more than 500,000 mobile subscribers. Umniah started commercial operations late June 2005, and has grown rapidly, gaining 13% of the Jordanian mobile market share in the last 12 months. Mobile subscribers are expected to grow by 120% and reach over 1.2m by the end of 2006.

Batelco plans to operate Umniah independently to its fixed line business which is trading under the brand name Batelco Jordan.

Batelco says that it plans to continue its regional expansion drive through targeted acquisitions of other operators and licences.

"Whilst our origins are in Bahrain and we have to drive a "Customers First" strategy of continuous operational improvement in Bahrain, to deliver growth and dividends, we also have to tap into growing markets larger than Bahrain either directly or with partners," said Batelco's Chairman, Hassan Ali Juma.

The acquisition of Umniah is consistent with Batelco's 2006-08 'Peak Performance' Business Strategy presented to the Board of Directors in December 2005. On that occasion Mr. Juma said that exploring new markets across MENA (Middle East North Africa) in order to grow and continue to nurture the Company's joint ventures in Jordan, Kuwait and Egypt, were high on Batelco's priority list."

Posted to the site on 26th June 2006