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etisalat rakes in Dh2.33b from Mobily stake sale
etisalat said on Tuesday it sold 43.75 million shares in Saudi affiliate Etihad Etisalat (Mobily), generating returns of Dh2.33 billion ($634.3 million).
- Reuters
- Published: 00:17 April 16, 2008
Abu Dhabi: etisalat said on Tuesday it sold 43.75 million shares in Saudi affiliate Etihad Etisalat (Mobily), generating returns of Dh2.33 billion ($634.3 million).
Profit from the sale will be counted in the company's second-quarter earnings, it said in a statement on the Abu Dhabi bourse website.
The company sold the shares at 55 Saudi riyals each ($14.67), or a total 2.41 billion Saudi riyals, it said.
etisalat said last week it sold a stake in Mobily, as required by its licence. It did not give details at the time.
etisalat's holding in the firm is now 26.25 per cent, compared with 35 per cent, it said then.
Investors
Six Saudi institutional investors, including state-run Public Pension Agency and General Organisation for Social Insurance (GOSI), have held 45 per cent of the Mobily's shares.
Mobily, one of two mobile telephone service providers operating in a country of 24 million people, started operations in mid-2005. It has since claimed a 40 per cent market share.
Its 2007 profit almost doubled to 1.38 billion Saudi riyals on a 44.3 per cent increase in sales to 8.44 billion Saudi riyals.
Mobily and its rival Saudi Telecom Co will face more competition this year when a group led by Kuwait's Mobile Telecommunications Co (Zain) starts operating a third mobile network in the kingdom.
Acquisition: Finance secured for deal
Mobily has successfully arranged an Islamic financing worth 1.5 billion Saudi riyals to finalise the acquisition of data communication infrastructure company Bayanat Al Oula.
The financing is based on a Murabaha acquisition financing facility, arranged by three major Saudi banks - Samba Financial Group, National Commercial Bank and Saudi British Bank. The structure of the facility is subordinated acquisition debt for one year term, which can be extended on maturity for another six months on the same terms and conditions. Samba Financial Group has been retained as Financial Advisers to Mobily to structure this financing.
"Once again, the banking community swiftly responded to company's request for arranging the 1.5 billion Saudi riyal acquisition financing, to achieve its strategic objective of becoming a fully integrated telecom company with this acquisition," Khalid Al Kaf, Mobily's CEO, said.
- Staff Report
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