Batelco Group, listed on the Bahrain Bourse (Bahrain Telecommunications Company – BATELCO), the leading telecommunications company in Bahrain and a regional operator with over 9.2 million customers, on Wednesday announced that it has submitted an offer to acquire all the shares owned by Zain Group in Mobile Telecommunications Company Saudi Arabia (Zain KSA).
“Batelco Group has submitted a confidential, non binding offer to acquire Zain Group’s 25% stake in Zain KSA,” said Peter Kaliaropoulos, Batelco Group Chief Executive.
“Our offer is subject to due diligence and a number of terms and conditions, including approvals from Regulatory Authorities such as Communications and Information Technology Commission (CITC) and Capital Market Authority (CMA), Zain KSA Board Directors, and other relevant parties,” he said.
“Our offer remains valid till 16 February 2011,” he added.
Last week Peter said that Batelco Group would continue to seek a major acquisition this year as part of its strategy of maintaining a sustainable a revenue and profitability stream intact in 2011.
Talking to journalists Peter reiterated his company would prefer investing in a running business instead of seeking a new license which according to him would not yield financial benefits for the company’s shareholders.
“Any acquisition in the MENA or other growing markets including the most potential market like Saudi Arabia can attract Batelco’s attention,” he said.
“We had hoped to increase our footprint in 2010 but the right opportunity did not materialise. To realise further growth and diversify our revenues, we need to increase our scale and invest in companies that are already established but still offer growth in their markets or in new start ups ready to launch. Looking to acquire now licenses is not an option that we are considering.”
Batelco, he said, has a zero debt balance sheet and $120 million cash in hand and the company is in a position to go for acquisition at any time.
Batelco had reported gross revenues of BD340.3 million and net profit of BD86.8 for 2010, a decrease of 17.4% over 2009.
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