Qtel doubles stake in Asiacell to 60 per cent

Qatar Telecom (Qtel) announced today that it has reached agreements to increase its shareholding in Asiacell, the Iraqi mobile operator.

Qtel has agreed to increase its shareholding to 60 per cent from its current 30 per cent for a total consideration of US$1.47 billion. Qtel will initially increase its ownership in Asiacell to 53.9 per cent; the further increase in shareholding is subject to Iraqi government and regulatory authority approval. The transaction will be financed from existing funds.

Qtel declined to identify the sellers of the stake, but in January sources said the operator was planning to buy private equity firm Merchant Bridge’s 19 per cent holding in Asiacell.

Asiacell has a 38 per cent share of Iraq’s mobile subscribers, according to rival Zain’s 2011 annual report. Zain’s Iraqi unit is the market leader with 53 per cent of subscribers, while France Telecom affiliate Korek has nine per cent.

The three operators were awarded 15-year mobile licences in 2007. These licences required them to launch initial public offerings to sell 25 per cent of their shares by the end of August 2011, but all three have yet to do so, saying the fledgling Iraqi bourse is ill-prepared.