Zain takes control of Iraqi operations

Zain Group has increased its stake in Zain Iraq from 30 per cent to 62 per cent through exercising a pre-agreed call option between Zain and the owners of Athir National (Bahrain), which is one of the three founders of Atheer Telecom Iraq (Zain Iraq) for a total consideration of US$34.5 million.

Zain Iraq CEO Ali Al-Dahwi has been hard at work integrating the former MTC-Atheer and Iraqna into a single operation

Zain Iraq is the leading mobile provider in the country with over 8.5 million active customers.

“We have taken this step due to our enduring faith and trust in the future of Iraq and the enormous potential of its telecommunications industry, commented Saad Al-Barrak, CEO of Zain. “We are confident this increased shareholding will positively impact Zain Group’s future financial results in many facets, to the delight of our many stakeholders.”

Zain has been providing mobile telephony in Iraq since December 2003 (previously under the name of MTC-Atheer). In August 2007, the company acquired a 15-year nationwide licence for US$1.25 billion, shortly thereafter followed by the acquisition of Iraqna for US$1.2 billion on December 31, 2007. On January 5, 2008 Zain Group merged Atheer with Iraqna under the new brand name Zain.

Iraq has been witnessing significant growth rates in mobile users over the last few years with penetration rates now reaching 50 per cent.