Business | Telecoms
Saudi Telecom unveils aggressive expansion plan
: Saudi Telecommunications Company (STC) the largest Arab telecom firm by market value, has unveiled plans to go ahead aggressively with its drive to make foreign acquisitions.
- By Mariam Al Hakeem, Correspondent
- Published: 00:01 March 16, 2008
Riyadh: Saudi Telecommunications Company (STC) the largest Arab telecom firm by market value, has unveiled plans to go ahead aggressively with its drive to make foreign acquisitions. The process started nine months ago. It plans make investments worth 56.3 billion riyals ($15 billion) to acquire stakes in foreign companies.
Saudi Telecom is the last of the five largest Gulf telecom operators to start making foreign acquisitions.
"It has so far invested 22.5 billion riyals in this regard," said Dr Fahd Bin Mushayt, head of the strategic investment unit at Saudi Telecom. In a press statement, he said that the company is now concentrated in gaining access to the markets of Bahrain, Lebanon, Egypt and even Vietnam.
Last year, Saudi Telecom bought 35 per cent of Oger Telecom for 9.8 billion riyals.
Also, it made its first foreign acquisition when it bought 25 per cent of Malaysia's Maxis in a 11.3 billion riyal deal that gave it access to India and Indonesia.
Saudi Telecom also secured a 26 per cent stake in Kuwait's third mobile phone company with a 3.375 million riyal bid in its second foreign venture.
The Kuwait company is expected to offer 51 per cent of its stake for public sale in the second half of this year.
On the sidelines of the Riyadh Capital Forum, Bin Mushayt said that Saudi Telecom expected to raise its revenues from foreign investments to 7.5 billion riyals during the current year.
"This accounts for 20-25 per cent of the total revenues expected in 2008,"he said. He also unveiled plans to gain access to the markets of neighbouring countries. "We have started procedures to secure licence for the third mobile phone operator in Bahrain and the second land phone provider in Egypt," he added.
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