Saudi Telecom Expected to Seek US$14 Billion Debt for Overseas Aquisitions

The Bahrain based Securities & Investment Company (SICO) has issued a report covering Saudi Telecom Company (STC) which expects the company to raise as much as US$14 billion of debt to pursue its international acquisitions towards its objective of generating over 10% of revenues from outside Saudi Arabia by 2010.

STC?s recent US$3 billion acquisition of a 25% stake in Malaysia?s Maxis provides it with access to over 14 million customers in Malaysia, India and Indonesia. SICO estimates that the deal will be value accretive and add approximately 5% to growth.

SICO reaffirmed in the report that despite stiff competition, STC is expanding and leveraging its infrastructure and coverage within its home county, and is expanding outside the Kingdom with an estimated 10% of total revenue being generated from outside KSA by 2010. While STC?s market share is set to decline to 52%, SICO forecasts strong customer growth prospects for the company, which it expects will post a 7.4% compounded growth in earnings over the horizon.

Posted to the site on 16th August 2007