Qatar Telecom (Qtel) has confirmed that it is making an offer to buy out the remaining shareholders in its Wataniya Telecom subsidiary in a US$1.9 billion deal. Qtel currently owns 52.5% of Wataniya Telecom and is seeking to buy the rest. Based on the current stock market price, the company is worth around US$4 billion, and the deal will cost Qtel around US$1.9 billion.
The remaining stake is split between the Kuwait Investment Authority, which owns 23.5% and the rest which is listed on the local stock market.
In a formal statement, the company said that it has submitted an offer document for approval from the Kuwait Capital Market's Authority which may lead to an offer for all the issued shares of Wataniya Telecom not already owned by Qtel.
Qtel said that the proposed offer is in line with its strategy to simplify the Group structure while providing an attractive offer to minority shareholders. Any offer would be subject to the relevant regulatory approvals.
The CMA has taken the decision to suspend trading in Wataniya's shares while the CMA reviews the offer document.