Saudi Telecom Takes 26% Stake in Kuwait's 3rd Mobile Operator

Saudi Telecom (STC) has won the auction for a 26 percent stake in Kuwait's third mobile company for a payment of US$908 million. The announcement was made by the Kuwait Investment Authority, although the deal is still awaiting formal approval from the Kuwaiti government.

Under the terms of setting up the 3rd mobile operator, the 26% stake was to be sold to a strategic investor - with 50% listed on the local stock market and the remaining 24% held by government institutions.

STC president Saud al-Daweesh said the new company will start operations by the 3rd quarter of next year and aims to secure 30% of the market within 10 years.

STC earlier this year acquired a 25 percent stake in Malaysia's Maxis Communications in a deal worth just over US$3 billion.

Kuwait has two operators, Zain and Wataniya Telecom. According to figures from the Mobile World, the country ended the first half of the year with just over 2.5 million mobile subscribers - representing a penetration level of 104%. It should be noted that a large percentage of that are from ex-pats using local SIM cards.

Posted to the site on 27th November 2007