“Batelco with a cash flow of BD87 million and Zero debt balance sheet has received a very healthy response from the local, regional, international and Islamic financial institutions for raising between $800 to $850 million,” Batelco Group Chief Executive Officer, Peter Kaliaropoulos told a half-yearly media briefing on Thursday.
Kaliaropoulos, who was joined by Batelco Bahrain CEO Rashid Abdulla and Ahmed Janahi head of Corporate Communications, said the response to Batelco by a group of banks was very encouraging. Though, we don’t need that entire amount for the upcoming takeover of 25% stake in the Zain KSA but Batelco is seeking around $850 million facility to fund its ongoing projects across the region.
“We have got very attractive offers even from the Islamic banks and at this stage we are not sure that it will be one institution or a consortium to arrange the facility,” Kaliaropoulos explained.
Talking about the Zain KSA acquisition, Peter said he was positive that the deal would be secured as perceived by the parties concerned. “We have secured a principal acceptance from the 75% shareholding of the Zain KSA about the 25% acquisition, which is considered one of the major steps prior to start the due diligence process. We will start a due diligence shortly as part of the process to go through the necessary details of the Zain KSA as a company,” he further said.
Zain KSA had accepted a non-binding offer from the Consortium to acquire such shares, being 25% of the total issued shares of Zain KSA, as previously announced by each of Zain, KHC and Batelco.
“The Batelco-Kingdom Consortium has addressed all key matters of interest to Zain KSA and Zain Group relating to the due diligence exercise. All parties are now working closely to complete this phase of the transaction,” said Kaliaropoulos.
“The takeover of 25% stake by KHC-Batelco consortium is strategic move where Batelco will see the growth of Zain KSA as one of the prime targets,” Kaliaropoulos said.
On Wednesday, Batelco Chairman Shaikh Hamad Bin Abdulla Al Khalifa announced a net profit of $102.9 million for 1H 2011 and gross revenues of $432.9 million with earnings per share were 26.9 fils. The board of directors approved an interim cash dividend of 20 fils per share.
“At end of the first half, Batelco Group had exceeded the 10.3 million customers mark across its operations as the Company celebrates its 30th anniversary serving the Kingdom of Bahrain,” Peter said.
“Batelco, with a total customer base of 10.3 million at end of 1H, is eyeing to see the consolidated number of customers rising to 20 million following the completion of the takeover of the Zain KSA,” Peter said, adding that Zain KSA would add value to Batelco’s efforts to serve the Kingdom of Saudi Arabia more aggressively.
“Batelco’s consolidated gross revenues of BD163.2 million declined by 4% compared to the same period last year. However, Batleco’s Q2 versus Q1 results delivered 2% growth in gross revenues, flat operating profit at BD22.7m and growth in net profit,” Peter said, adding that the 2H of 2011 will be better in terms of profitability and revenues.
The Group’s 96% owned subsidiary in Jordan, Umniah, continues to deliver a solid performance and reported an 8% increase in its number of mobile subscribers since the beginning of the year, with their customer base now standing at 2.3 million.
Talking about Batelco’s subsidiary in Yemen, Sabafone he said company continued to deliver the services despite unrest and apart from few kidnapping issues of employees everything was going well. “There are some problems at the International Gateway for Sabafone and that will be also addressed following the technical staff from abroad those who are not getting excess due to security situation,” Kaliaropoulos, added.