Batelco Completes the Sale of its Kuwait Subsidiary, QualityNet General Trading and Contracting Company W.L.L
Batelco (Ticker: BATELCO) has announced that it has completed the sale of its 90% shareholding in its Kuwait subsidiary, QualityNet General Trading and Contracting Company W.L.L (“QualityNet”) to Kuwait Telecommunications Company (“VIVA”) in accordance with the signed Share Purchase Agreement (“SPA”) dated 9th April 2019.
The full transfer of shares has been completed with the fulfillment of the terms, conditions and covenants that were agreed between the parties in the SPA with the total transaction value of Kuwaiti Dinars25.5M (BD31.6M), for the 90% shareholding.
Batelco Chairman Shaikh Abdulla bin Khalifa Al Khalifa, who confirmed the finalisation of the sale, stated that as part of the Company’s corporate strategy Batelco carries out strategic reviews annually on its assets in order to crystalise value by rationalising and optimising its current portfolio of assets.
“The sale of QualityNet for KD25.5M (BD31.6M) provides peak valuation for Batelco’s shareholders and allows us to focus on redeployment of funds to a number of areas including acquiring synergistic growth opportunities in existing markets, funding the expansion of our current operations into selected adjacent businesses and funding investments in high growth digital adjacencies,” Shaikh Abdulla said.
Commenting on the sale, Batelco CEO of International Investments Ihab Hinnawi said that QualityNet, one of Batelco’s earliest overseas acquisitions, has been a very strong asset for Batelco for more than 20 years and has contributed significantly in providing value creation for shareholders.
“The telecommunication industry in Kuwait has been going through a transformational phase in recent years with a focus on consolidation of fixed, mobile and broadband providers. QualityNet is the first, largest and leading ISP in Kuwait, and this deal supports the best strategic interest of all parties.”
“In line with our strategic objectives, developed to create the best value for our shareholders, the sale of QualityNet comes at the right time and supports our investment plans for Bahrain and all our operations footprints,” he added.
“Going forward, we will continue to assess all our investments and explore a number of opportunities with a view to strengthening our portfolio and capabilities,” Mr. Hinnawi concluded.