State-controlled Saudi Telecom Company won a contest for a stake in Kuwait’s third mobile phone company, bidding 248.7 million dinars ($907.7 million) and beating rivals including Turkcell, Kuwait said.
A group including Kuwait Finance House came in second for the 26% stake with a bid of 195 million dinars, and Etisalat third with a 180 million dinar offer, state-owned Kuwait Investment Authority (KIA) said on Tuesday.
The KIA is managing the sale. Shares of Saudi Telecom, the largest Arab telecom firm by market value, rose after the news but were down 0.96% at 0924 GMT.
“Kuwait is very important for Saudi Telecom,” Saudi Telecom chief executive Saad Al-Duweish told Al Arabiya TV. “We expect to take 30% of the market over the next ten years… it is an attractive market.”
Nine firms and groups competed for the stake, including a group consisting of Batelco and Islamic firm Investment Dar.
Other bidders were Kuwait’s Global Investment House, and a group including Commercial Bank of Kuwait (CBK).
The new operator will compete with Zain and Wataniya in the nation of about three million people. Kuwait has a mobile penetration of more than 90%.
The government will in February sell another 50% of the company in an initial public offering (IPO) open to Kuwaiti citizens only and retain 24% of the company.
Saudi Telecom has been expanding abroad as competition at home intensifies. In June, it agreed to buy 25% of Malaysia’s Maxis and 51% of its Indonesian unit for $3 billion.
Al-Watan newspaper reported on Monday that Saudi Telecom won the bidding contest. (Reuters)
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