Saudi Telecom to take majority control of Kuwait's Viva

Saudi Telecom (STC) will buy a further 25.8 percent of Viva for $424 million (1.59 billion riyals), taking majority control of its affiliate following the close of a voluntary tender offer period for the Kuwaiti firm's shares.

This will raise STC's stake in Viva to 51.8 percent, the Saudi firm said in a bourse statement on Monday. The former monopoly currently owns 26 percent of Viva, which rapidly won market share after launching services in 2008 and turned profitable four years later.

STC in December said it would offer 1 dinar ($3.30) per share for all shares in Viva it did not own, a proposal Viva's board described as unfair.

Viva's shares had hit a record high of 1.1 dinars before STC revealed its offer price, but Gulf stock markets have since slid following a renewed slump in oil prices. Viva's shares ended Sunday at 0.940 dinars.

Kuwaiti state institutions own about 16 percent of Viva, Reuters data shows.

Related:

Market Performance

Saudi Telecom Company
57.5
0.0 0.0 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia, other issuers gear up as Gulf bond crush looms

Saudi Arabia, other issuers gear up as Gulf bond crush looms

Cash-strapped region gears up for one of its heaviest-ever periods...

Saudi central bank fights to curb money rate rise

Saudi central bank fights to curb money rate rise

Commercial bankers say more radical steps may be needed to fight...

Are the troubles easing for Saudi construction giant Binladin?

Are the troubles easing for Saudi construction giant Binladin?

Gulf kingdom's biggest builder appears to have pulled back from...

Most Discussed
sponsoredTracking