Saudi Arabia's Mobily Walks Away from Landline Purchase
Published on: 29th May 2014
Saudi Arabia's Etihad Etisalat (Mobily) has announced that it is walking away from a deal that would have seen it buy a majority stake in the landline operator, Etihad Atheeb Telecom.
The company issued an exceptionally long winded statement that can be essentially summarised as saying that talks with the shareholders broke down.
No details were given.
As announced last August, the deal, if ever completed would have seen Etihad Etisalat taking a controlling stake in the country's second landline network Etihad Atheeb (trades as Go).
Etihad Atheeb Telecom is a joint venture of Atheeb Trading Company, Al-Nahla Trading Company, Bahrain's Batelco and Traco Company. Just under half its shares are listed on the stock exchange, where its shares have been suspended several times over the years due to its ongoing losses.
It's not clear why the talks broke down, and it leaves Mobily still lacking a landline operator license, and Atheeb Telecom without the long hoped for deep pockets of a fresh investor.