Batelco, the leading telecom operator in Bahrain, said it was interested in the Saudi assets of Kuwait's Zain, which is studying an offer to sell a 46-per cent stake to UAE-based Etisalat.

Batelco said the stake which is worth $751 million at its current share price, was 'very conditional' and depended on a number of factors.

'Such an interest is part of the company’s strategy to explore suitable M&A opportunities outside of Bahrain,' remarked Peter Kaliaropoulos, Batelco Group chief executive.
 
'We certainly have an interest in studying further such an opportunity and working with our partners to explore it, when it is appropriate. It is premature at this stage to speculate further,' he noted.

'The company is not in direct discussion with any parties involved but our M&A team are investigating its feasibility for us,” Kaliaropoulos added.

Batelco, he said, was mainly keen on companies that have recently begun operations or are already established and still growing.

“We have many times reiterated that we continue to look for viable opportunities to deliver sustainable growth and value to our shareholders as our home market has reached very high penetration levels. Our strategic focus remains the Middle East region in addition to North Africa, India/Asia Pacific,” Kaliaropoulos said.

His comments come at a time when Etisalat has bid 1.7 dinars a share for a 46-per cent piece of Zain, in a deal worth around $12 billion. A major Zain shareholder has hinted that it would accept the offer.

With both Etisalat and Zain in Saudi Arabia, the deal would result in the sale of Zain's business in the kingdom.

Batelco is already present in Saudi Arabia through its 15 per cent stake in Etihad Atheeb Telecommunications Company, which has won a licence to provide fixed line services in the kingdom under the Go brand.

“We already have invested in Saudi’s telecommunications market with our partners in Atheeb. It is natural that should the opportunity be presented to invest further in the Kingdom, our M&A team will always explore it,” Kaliaropoulos added.-Reuters and TradeArabia News Service