Batelco acquires Alghanims stake in Quality Net
Manama, February 20, 2014
Batelco Group, a regional telecommunications group with operations across 14 countries, has entered into a share purchase agreement with the Alghanims to acquire their 46 per cent shareholding in Quality Net, a leading Internet and Data Service provider operating in Kuwait.
The acquisition will increase Batelco’s equity stake in Quality Net from 44pc to 90pc, the company said.
Batelco Group chairman Shaikh Hamad bin Abdulla Al Khalifa and the Alghanims representative and chairman of Quality Net Khalid Ali Alghanim, signed the SPA yesterday (Feb 19).
Completion of the acquisition is conditional upon satisfaction of several preconditions but full completion is expected during March, the Batelco statement said.
Shaikh Hamad said: “Part of the Batelco Group’s growth strategy is portfolio optimization. Topping up existing investments such as Quality Net is consistent with such strategy and provides the right kind of fit for the group to enhance future value of its international operating companies by realizing cost efficiencies and further telecom upside opportunities.
“Over the past 15 years, Quality Net has developed a competent team of employees led by experienced executives who thrive on creating a reliable service for its customers,” said Shaikh Hamad.
The Batelco Group plans to continue its international expansion drive through targeted acquisitions of other operators and optimization of its existing portfolio, he said.
Quality Net remains the clear market leader in the fixed data communications and internet services in Kuwait, it said.
In 2013, it maintained market share and position delivering steady results and ending the year with over 40,000 customers. In recent years, Quality Net has launched global managed services in partnership with global players to serve corporate and multi-national companies. Its service portfolio also includes structured cabling, cloud and IT security services for meeting the growing demand from corporate clients, small to medium enterprises, and shopping malls. – TradeArabia News Service