Qatar Telecom Buys Control of Kuwait's Wataniya

Qatar Telecom has announced that it is paying US$3.7 billion for a controlling shareholding in Kuwait based, Wataniya, which has mobile operations in seven countries in the region. Qtel will acquire 51% of the share capital of Wataniya from Kuwait Projects Company Holding KSC (KIPCO) and other related parties as well as further and additional direct investments in its Algeria and Iraq operations for a total consideration of $3.7 billion.

Commenting on the investment, His Excellency Sheikh Abdullah bin Mohammed bin Saud Al Thani, Chairman of Qtel said: "This deal is undoubtedly the most significant in the region and totally changes the face of mobile telecommunications in this part of the world. This is yet another critically important move in our aim to be among the top 20 telecommunications companies in the world by 2020. The markets we are entering with this investment are ones with which we are culturally familiar but more importantly, where we can bring our expertise to bring real growth opportunities. We are delighted with this deal and we look forward to concluding this transaction and developing our plan for the business."

Following the acquisition, Qtel will have an equity interest in operations in 11 countries in MENA and Asia. These operations are in Qatar, Kuwait, Tunisia, Algeria, Iraq, Saudi Arabia, the Maldives and Palestine. The Palestinian operation will commence operation later this year.

Qtel's other international interests are in Oman (Qtel subsidiary Nawras), Singapore (StarHub) and Indonesia (IndoSat) (through the recently announced deal with ST Telemedia).

Qtel's Chief Executive Officer Dr Nasser Marafih said: "This investment represents another major step forward in Qtel's growth strategy in achieving our stated objective of growing a significant business outside Qatar. For over two years now, we have stated that we would look for growth beyond our home shores and today is proof positive not only of our determination to succeed but also of our ability to thrive in a demanding, challenging but eminently rewarding sector."

Qatar Telecom is 55-percent-owned by the government of gas-rich Qatar. Qatar Telecom's monopoly in Qatar is due to be broken later this year."

Posted to the site on 5th March 2007