MANAMA, 22 August 2007 — Global Investment House (GIH), in its investment update, valued Qtel’s stock at QR232.5, revising its recommendation on the stock from “buy” to “hold.”
A detailed report on the company said that the acquisition of Wataniya has significantly widened Qtel’s geographical presence.
Qtel had acquired a controlling stake in National Mobile Telecommunications Company (Wataniya) last March. The Qatar firm now owns 51 percent of the share capital of Wataniya, acquired from Kuwait Projects Company Holding KSC and other parties as well as additional direct investments in its Algeria and Iraq operations for a total cash consideration of $3.8 billion. Qtel and A. A. Turki Corporation for Trading and Contracting of Saudi Arabia (Atco) acquired a 75 percent stake in Burraq Telecom Ltd of Pakistan (Burraq). The acquisition has been made under Atco Clear wire that is a joint venture between Qtel and Atco in which Qtel owns 78 percent.
Atco Clear wire owns 75 percent in Burraq and 100 percent in a venture to roll out WiMax in Jordan. Qtel and Singapore Technologies Telemedia Pte Ltd. (ST-T), a leading information communications company with operations in the Asia-Pacific, the Americas and Europe, created a strategic alliance to explore and invest in new mobile telecoms opportunities while strengthening existing businesses in the Asia-Pacific region.
Under the strategic alliance, Qtel acquired a 25 percent stake in Asia Mobile Holdings, Singapore. ST-T will remain the controlling shareholder with an approximate 75 percent equity stake in AMH. AMH currently holds ST-T’s stakes in Star Hub Ltd. (49 percent), Singapore’s second largest info-communication company, and PT Indosat Tbk (41 percent), Indonesia’s second largest mobile operator with over 14 million subscribers. Recently, Asia Mobile has completed acquisition of a 49 percent shareholding in Shenington Investments Pte Ltd.