RIYADH, 22 January 2008 — Saudi Telecom Company (STC) is to acquire a 35 percent interest in Oger Telecom for a net price of $2.56 billion, the company announced here at a press conference held at its headquarters here yesterday. “We have reached substantive agreement with Saudi Oger, the controlling shareholder of Oger Telecom Limited (Oger Telecom), for the purchase of a Oger Telecom that owns a 55 percent stake in Türk Telekom, which, in turn, owns 81 percent of Avea. Oger Telecom also owns 75 percent of Cell C and 95 percent of Cyberia,” Dr. Muhammad Al-Jasser, chairman of STC, said. He added that the transaction has been tentatively approved by the STC board of directors subject to final agreement of legally binding documentation. “Various approvals, customary conditions will precede the completion of transaction,” he added.
“This investment is consistent with our expansion strategy and it offers the company a simultaneous entry into two of the largest and most advanced emerging telecom markets. This transaction marks another important milestone in STC’s development and will help us achieve our ambition to become the undisputed leader in the region,” Al-Jasser said
Saudi Telecom bought 25 percent of Malaysia’s Maxis in a $3 billion deal that gave it access to India and Indonesia.In November, it secured a 26 percent stake in Kuwait’s third mobile phone company with a $908 million bid in its second foreign venture.
