Qatar Telecom (Qtel) has been given the go ahead to make a bid to buy the shares in Kuwait-based operator Wataniya Telecom that it does not already own.
The Kuwait Capital Markets Authority has approved the company’s offer document meaning it can proceed with its mandatory tender offer of KWD622.4 million (US$2.2 billion).
The bid equates to KWD2.60 per share, a 22.6 percent premium on the closing price on 21 June, the last trading day before the offer document was first submitted. The offer is for 239.4 million shares and doesn’t take into account any provision for commission, taxes or government charges.
“We are grateful for the steadfast support of Wataniya Telecoms shareholders to date and believe this cash offer provides shareholders with an attractive option to capitalise on their investments at a fair price,” said Qtel Group chairman Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani.
He added that Wataniya will need “increasingly dynamic responses” to increased competition and industry pressures if it is to retain its value.
Qtel Group CEO Dr. Nasser Marafih said: “Our offer to the existing shareholders of Wataniya Telecom is in line with our global strategy to simplify group structure and governance and maximise our subsidiaries’ growth potential, efficiency and overall operational effectiveness.”
An offer document has been sent to Wataniya Telecom for its board to review and provide a recommendation to shareholders regarding the deal.