MTC board approves capital increase to help fund Celtel buyout

The board of Kuwaiti mobile operator Mobile Telecommunications Company (MTC) have recommended a 100% increase in capital to help fund a loan it took out to pay for the USD3.3 billion acquisition of Netherlands-based Celtel in May. MTC says it may need an additional USD2 billion to pay for a mobile licence in Iraq and to penetrate other target markets. The company reported profits of USD318 million in 1H 2005, up 54% on the same time last year.