Qtel granted permission to pursue outstanding stock

Qatar Telecom (Qtel) has been given the go ahead to make a bid to buy the shares in Kuwait-based operator Wataniya Telecom that it does not already own.

The Kuwait Capital Markets Authority has approved the company’s offer document meaning it can proceed with its mandatory tender offer of KWD622.4 million (US$2.2 billion).

The bid equates to KWD2.60 per share, a 22.6 per cent premium on the closing price on June 21, the last trading day before the offer document was first submitted. The offer is for 239.4 million shares and does not take into account any provision for commission, taxes or government charges.

Qtel already controls 52.5 per cent of Wataniya Telecom stock, and on June 21 tabled an offer for the remaining 47.5 per cent.