Saudi Telecom buys 35% stake in Oger for $2.6b

Riyadh: Saudi Telecom, the largest Arab telecom firm by market value, said on Saturday it had finalised a 9.6 billion riyal deal ($2.56 billion) to buy 35 per cent of Oger Telecom.

"Saudi telecom has today signed a final agreement with Oger Telecom... it is part of Saudi telecom's efforts to expand its investments overseas," the company said.

Gulf Arab telecom operators are expanding out of their home markets, where most have been riding a wave of economic growth spurred by a five-fold increase in oil prices since 2002.

Saudi Telecom lagged its regional rivals, making its first foreign acquisition only last year, when it bought 25 per cent of Malaysia's Maxis in a $3 billion deal that gave it access to India and Indonesia.