Kuwait Telecom sale begins this week

19 Aug 2008

Saudi Telecom Company (STC)’s subsidiary in Kuwait is to sell off a 25% stake worth KWD25 million (USD93 million) prior to a flotation on the Kuwait Stock Exchange later this year. The sale, which will begin on 22 August MEED reports, comes as part of deal agreed when STC was awarded Kuwait’s third national GSM licence in November 2007. The firm, dubbed Kuwait Telecom, will also transfer a 25% interest to government-backed institutions including the Kuwait Investment Authority and the Public Institute for Social Security. STC’s local partners will receive a 24% stake while the Saudi telco will retain a 26% share. Kuwait Telecom is expected to launch its first services by the end of 2008 and will compete with incumbent operators Zain and Wataniya.