Mobily signs MOU to take control of Etihad Atheeb
Deal would give Mobily controlling stake in loss-making fixed line operator
Mobile operator Etihad Etisalat (Mobily) has signed a memorandum of understanding to acquire a controlling interest in fixed-line operator Etihad Atheeb.
The deal would give the Saudi operator, currently number two in the Kingdom, the capability to offer fixed-line services, in addition to mobile and fixed line Internet services.
The agreement is between Mobily subsidiary Bayanat Al-Oula, acquired in 2008 for SR1.5bn ($399.98m) to offer ISP services, and Atheeb Trading Co, Al Nahla Group, Traco Group for Trading and Contracting and the Saudi Internet Co.
Under the agreement requires regulatory approvals should be obtained and Bayanat must complete due diligence by 30th November.