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Qtel Gets Approval for Takeover of Wataniya Telecom
Published on:
Qatar Telecom (Qtel) says that it has received the approval from the Kuwait Capital Markets Authority (CMA) to go ahead with the previously announced deal to buy the remaining 47.5% stake in Wataniya Telecom that it does not currently own.
Of the outstanding shares, the Kuwait Investment Authority owns 23.5% and the rest which is listed on the local stock market.
The company is making a mandatory offer for the outstanding shares valuing the stake at KWD622.4 million (USD2.2 billion), which also represents a 25% premium over the average shareprice before the offer was originally announced.
Qtel said that the proposed offer is in line with its strategy to simplify the Group structure while providing an attractive offer to minority shareholders.
Dr. Nasser Marafih, CEO of the Qtel Group commented: "Wataniya Telecom is about to embark on a major network investment program in its four main markets, which will increase leverage and reduce free cash flow for the next 3-4 years. Our recent acquisition of a 3G and fixed license in Tunisiana will require significant investments in building new networks. In addition, we will also have to make substantial investments in data networks in Kuwait and Algeria. Our offer to the existing shareholders of Wataniya Telecom is in line with our global strategy to simplify group structure and governance and maximise our subsidiaries' growth potential, efficiency and overall operational effectiveness."
Tags: [qtel] [wataniya telecom] [Kuwait] [Qatar]
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