Qtel forks out US$635 million cash for presence in Asia

Under the terms of the agreements, Qtel will invest up to US$635 million in cash for an approximate 25% equity stake in ST Telemedia’s Asia Mobile Holdings (AMH).

  • E-Mail
By  Tawanda Chihota Published  January 25, 2007

Fulfilling its stated ambition to expand rapidly into international markets during the course of 2007, Qatar incumbent Qtel has announced the formation of a new strategic alliance with Singapore Technologies Telemedia (ST Telemedia) to explore and invest in new mobile telecoms opportunities while strengthening existing businesses in the Asia-Pacific region. Under the terms of the agreements, Qtel will invest up to US$635 million in cash for an approximate 25% equity stake in ST Telemedia’s Asia Mobile Holdings (AMH). ST Telemedia will remain the controlling shareholder with an approximate 75% equity stake in AMH, which will be the parties’ preferred vehicle for future mobile telecoms investments in selected key markets in the Asia-Pacific region. AMH currently holds ST Telemedia’s stakes in StarHub, the Singapore mobile operator, and PT Indosat, Indonesia’s second largest operator with over 14 million mobile subscribers. This strategic alliance will not impact ST Telemedia’s existing and potential investments in the Americas, Europe and other regions. “This partnership represents the next step in Qtel’s growth strategy, and allows Qtel to establish an immediate presence in two key markets, Singapore, an advanced market, and Indonesia, the fourth most populous country in the world, commented Nasser Marafih, Qtel’s CEO. “We believe that the Asia-Pacific is a high growth region and is one of the main areas we have targeted for our expansion. We are excited about the prospects for growth in the region and believe ST Telemedia is an ideal partner for us in this endeavour.”

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code