Batelco eyes sale of tower assets

Bahrain Telecommunications (Batelco) is eyeing a sale and lease-back deal for its tower assets in Bahrain and Jordan, a banking source familiar with the matter said, in a move that would raise funds for potential acquisitions.

Batelco, which secured investment-grade ratings last month, has hired Citigroup to help with the sale process, the banking source said speaking on condition of anonymity.

The deal may generate between $200 million (Dh734.58 million) and $300 million for the carrier, he added. A formal bidding process is on and Batelco has received expressions of interest from a few bidders, the source said.

A Batelco executive said on Sunday the firm was looking at options to monetise the tower operations in the two countries. "We are exploring all options to unlock value for our business and the towers is one of those options, but we have not made a decision on whether to lease them back or keep them — we are still going through the deliberations," said Peter Kaliaropoulos, Batelco chief executive of strategic assignments.

Qatar Steel

Qatar Steel, a wholly-owned subsidiary of Industries Qatar, has secured a $250 million subordinated loan facility from two banks to finance expansion, it said yesterday. International Bank of Qatar (IBQ) is acting as facility agent and will provide $150 million of the total while Abu Dhabi-based Union National Bank will fund the remainder. The statement did not provide details of the pricing or other terms of the medium-term loan facility.

The funding will be used to finance a new smelter, which will produce 1.1 million tonnes of steel a year and is expected to launch in the first quarter of 2013, targeting local and regional markets, Qatar Steel said in a statement said. Qatar, the world's largest exporter of liquefied natural gas, has been investing in industries other than gas.

It launched a $5.7 billion aluminium plant in December 2009 which was inaugurated last year.

Istanbul stock exchange

The Istanbul Stock Exchange may be turned into a joint stock company by the end of next year, Hussain Erkan, chairman of the bourse, said in Abu Dhabi yesterday. Erkan said he may be reappointed as chairman when his term expires at the end of this year.

Rabigh Refining

Rabigh Refining and Petrochemicals Co., a Saudi Arabian fuel producer, said fourth-quarter results will be boosted by the successful completion of a performance guarantee test at its high olefins fluidised catalytic cracking unit. The company made the announcement in a statement to the Saudi bourse yesterday.

Agility

Kuwait's Agility has bid about 25.6 million dinars (Dh339.38 million) to acquire a strategic stake in Kuwait Health Assurance Co. (KHAC), a company currently under establishment, Agility said yesterday.

KHAC is a project envisioned in Kuwait's five-year development plan and aims to privatise expatriate health insurance and associated medical care. The project also includes plans to build and operate three new hospitals and 15 health clinics. The company is being set up with a capital of 318 million dinars ($1.15 billion) and the required equity to establish the firm is 30 per cent, the logistics firm said in a statement to the Kuwait bourse. Strategic investors are required to bid for 26 per cent of the 30 per cent equity capital contribution, the firm said.

Kuwait air terminal

Kuwait's Ministry of Public Works said a new 900 million Kuwaiti dinar ($3.3 billion) passenger terminal under construction at Kuwait International Airport is due to open in September 2016.

The terminal will help turn Kuwait's International Airport into a regional hub in the Gulf, Kuwait's state news agency Kuna reports yesterday, citing Faisal Majeed, acting director of the head of the advisory department at the ministry.

The project is implemented under a decision by Kuwait's council of ministers in 2008 in coordination with the Department of Civil Aviation, Kuna reports.

The new terminal will be able to accommodate 13 million passengers annually in the first stage, with the ability to increase this number to 25 million and to 50 million in later stages, Kuna adds.

—Compiled from agencies