Mobily drops potential landline acquisition

Saudi Arabian number two Mobily has walked out of negotiations that could have resulted in it acquiring a stake in fixed-line provider Etihad Atheeb Telecommunications (EATC).

This suggests that the operator has given up on a potential move towards providing quad-play services.

The operator, an affiliate of the UAE’s Etisalat, had been in talks with EATC shareholders using its subsidiary Bayanat, which holds a fixed-line data licence. The acquisition of EATC would have provided Mobily with the capability of offering fixed and mobile packages.

While Mobily has not provided a reason for scrapping the talks, the negotiations may have simply dragged on for too long. In August last year, Bayant signed a memorandum of understanding with EATC’s founding shareholders that would have allowed it to acquire a majority holding in the operator. Last month, this figure had apparently been revised down to a 20% stake via a rights share issue.

 

Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.