The Board of Kuwait Telecom Company (Viva) has decided not to recommend Saudi Telecom Company’s (STC’s) buyout of 74% of the total outstanding share capital in the Kuwaiti operator at a price of KWD1 (USD3.3) per share. ‘The price offered from STC … is considered a price that is not fair, bearing in mind that this recommendation is non-binding and the decision to sell is up to the shareholders alone’, Viva said in a statement. For its part, STC said that the valuation of the Kuwaiti company was conducted based on Viva’s business plan (approved by the Board) and projected cash flows, and was approved by the Kuwaiti Capital Markets Authority (CMA) earlier this month. STC added that it would proceed with its offer and that it did not intend to change the offer price.
According to TeleGeography’s GlobalComms Database, Viva is currently owned by STC (26%), the Government of Kuwait (24%) and the Kuwaiti public (50%).