Etisalat nets $634mn from Mobily sale

UAE telecom sold 43.75 million shares in Saudi affiliate as required by its licence, now holds 26.25% stake.

  • E-Mail
By  James Cordahi Published  April 15, 2008

UAE telecom Etisalat said on Tuesday it sold 43.75 million shares in Saudi affiliate Etihad Etisalat (Mobily), generating returns of 2.33 billion dirhams ($634.3 million).

Profit from the sale will be counted in the company's second-quarter earnings, it said in a statement on the Abu Dhabi bourse website.

The company sold the shares at 55 riyals each ($14.67), or a total 2.41 billion riyals, it said.

Etisalat said last week it sold a stake in Mobily, as required by its licence. It did not give details at the time.

Etisalat's holding in the firm is now 26.25%, compared with 35%, it said then.

Six Saudi institutional investors, including state-run Public Pension Agency and General Organisation for Social Insurance (GOSI), have held 45% of the Mobily's shares.

Mobily, one of two mobile telephone service providers operating in a country of 24 million people, started operations in mid-2005. It has since claimed a 40% market share.

Its 2007 profit almost doubled to 1.38 billion riyals on a 44.3% increase in sales to 8.44 billion riyals.

Mobily and its rival Saudi Telecom Company will face more competition this year when a group led by Kuwait's Zain starts operating a third mobile network in the kingdom. (Reutersl)

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