Qtel takes stake in Asiacell ahead of licence award
Qtel rescued its interest in the Iraqi mobile market by buying a stake in mobile operator Asiacell just weeks before Asiacell won a new licence in the country.
Asiacell was one of three winners of the new 15-year mobile licences on 17 August, along with Kuwait's MTC-Atheer and the Kurdish-owned Korek.
The Qatari firm bought its stake in Asiacell from Luxembourg-based investment bank MerchantBridge. The bank retains 18 per cent of the business, with the remaining 51 per cent held by a group of Kurdish investors.
The transaction and the successful $1,250 million bid for the licence bring months of uncertainty over Asiacell to an end. Qtel held a stake in a previous company called Asiacell, via its Kuwaiti subsidiary Wataniya. However, that company went into voluntary liquidation, following rumours of a falling out between the Kurdish investors and Wataniya. A new Asiacell was then set up by the Kurdish investors and MerchantBridge.
A third company, called Asiacell Consortium, has now been set up, with Qtel holding 31 percent, MerchantBridge 18 per cent and the rest in the hands of the Kurdish investors.
Qtel refused to say how much its stake cost. Law firm Trowers & Hamlins advised Qtel on the transaction.
Qtel rescued its interest in the Iraqi mobile market by buying a stake in mobile operator Asiacell just weeks before Asiacell won a new licence in the country.
Asiacell was one of three winners of the new 15-year mobile licences on 17 August, along with Kuwait's MTC-Atheer and the Kurdish-owned Korek. The Qatari firm bought its stake in Asiacell from Luxembourg-based investment bank MerchantBridge. The bank retains 18 per cent of the business, with the remaining 51 per cent held by a group of Kurdish investors. The transaction and the successful $1,250 million bid for the licence bring months of uncertainty over Asiacell to an end. Qtel held a stake in a previous company called Asiacell, via its Kuwaiti subsidiary Wataniya. However, that company went into voluntary liquidation, following rumours of a falling out between the Kurdish investors and Wataniya. A new Asiacell was then set up by the Kurdish investors and MerchantBridge. A third company, called Asiacell Consortium, has now been set up, with Qtel holding 31 percent, MerchantBridge 18 per cent and the rest in the hands of the Kurdish investors. Qtel refused to say how much its stake cost. Law firm Trowers & Hamlins advised Qtel on the transaction.This content is only available to full MEED package subscribers (MEED magazine and MEED.com).
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