Batelco completes QualityNet sale

Batelco (BATELCO) has completed the sale of its 90 per cent stake its Kuwait subsidiary, QualityNet General Trading and Contracting Company (QualityNet) to Kuwait Telecommunications Company (VIVA). The sale was in accordance with the signed Share Purchase Agreement dated 9 April 2019. The full transfer of shares has been completed with a total transaction value of Kuwaiti Dinars 25.5M (BD31.6 million), for the 90pc shareholding.

Batelco Chairman Shaikh Abdulla bin Khalifa Al Khalifa confirmed the finalisation of the sale. “The sale of QualityNet for KD25.5M (BD31.6m) provides peak valuation for Batelco’s shareholders and allows us to focus on redeployment of funds to a number of areas including acquiring synergistic growth opportunities in existing markets, funding the expansion of our current operations into selected adjacent businesses and funding investments in high growth digital adjacencies,” Shaikh Abdulla said.

Commenting on the sale, Batelco CEO of International Investments Ihab Hinnawi said that QualityNet, one of Batelco’s earliest overseas acquisitions, has been a very strong asset for Batelco for more than 20 years and has contributed significantly in providing value creation for shareholders. “The telecommunication industry in Kuwait has been going through a transformational phase in recent years with a focus on consolidation of fixed, mobile and broadband providers.

QualityNet is the first, largest and leading ISP in Kuwait, and this deal supports the best strategic interest of all parties.” “In line with our strategic objectives, developed to create the best value for our shareholders, the sale of QualityNet comes at the right time and supports our investment plans for Bahrain and all our operations footprints,” he added. “Going forward, we will continue to assess all our investments and explore a number of opportunities with a view to strengthening our portfolio and capabilities,” Hinnawi said.