The MTC-led consortium has confirmed that it has been successful in making the highest bid for the third mobile telecommunications licence in the Kingdom of Saudi Arabia having bid SAR22.91 billion (US$6.109 billion). The award of the licence is subject to approval from the Saudi Arabia's Council of Ministers.
This licence will give MTC a presence in the largest market in the Gulf Cooperation Council ("GCC") in terms of population and the largest economy in the Middle East and Africa.
Commenting on the transaction, Dr. Saad Al Barrak, Chief Executive Officer of MTC, stated: "We are delighted to have made the highest bid and look forward to confirmation of being awarded the third mobile licence in the attractive Saudi mobile market. We have a strong consortium of Saudi partners, the most achievable synergies, and the operating expertise to bring world class services to the people of Saudi Arabia. This success underscores MTC's leadership position in the Middle East and beyond and recognizes the trust that the KSA has placed in us."
MTC currently holds a 50% interest in the consortium which will be reduced to 25% following a mandatory initial public offering ("IPO") of the new mobile operator in the KSA and allocations to two government entities. Local consortium partners include a number of Saudi Arabian businesses, including Saudi Plastics Factory, Almarai Company, Rakisa Holdings and Al Jeraisy Development Company.
The expected launch date of MTC's services in Saudi Arabia is early 2008.
On March 17th, the board of directors of CITC, chaired by Mohammed Jamil Mullah, Minister of Communications and Information Technology, selected the seven consortia from nine applicants.
Egypt's Orascom Telecom and Al-Shoula-MTNL consortium were out of the fray.
The other bidders were Samawat - Bharti Consortium (India, Singapore), Oger Telecom (controlled by Lebanon's al-Hariri family), Kingdom Turkcel (Kingdom Holding Co., owned by billionaire Saudi Prince Alwaleed bin Talal bidding with Turkish mobile operator Turkcell), Digi cel Tawacel Consortium, MTN Saudi Arabia Consortium & Abdullah Al Rajhi Reliance Telecom (India)."
Posted to the site on 26th March 2007
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