3 Oct 2014
Mobile and fibre broadband operator Vodafone Qatar has reached a non-binding agreement to buy state-owned passive broadband infrastructure operator Qatar National Broadband Network (QNBN), and expects to complete the deal by the end of 2014 pending further due diligence and regulatory approval, Reuters reported yesterday. UK/Qatari-backed Vodafone Qatar proposed to buy 100% of QNBN, comprising 21 million shares at a par value of QAR10 (USD2.75) per share (equating to a total of QAR210 million, although the company did not confirm if it offered to pay par value).
QNBN provides wholesale fibre broadband capacity to Vodafone and its larger mobile and fixed rival Ooredoo (which reciprocally contributes shared fibre infrastructure to QNBN). QNBN began a nationwide passive fibre network rollout in 2012 under a plan to finish construction in three years.
Vodafone Qatar stated: ‘Completion of the transaction is conditional upon regulatory approvals and consents, completion of due diligence, agreement on the consideration payable, the arrangement and provision of funding to finance the acquisition and entry into of a definitive share purchase agreement.’