Vodafone Qatar is set acquire 100 percent stake in state-owned Qatar National Broadband Network – in a deal valued at 210 million riyals.
Vodafone Qatar, which will benefit from fiber network of QNBN, expects to complete the deal by the end of 2014.
The company did not share reasons for the acquisition.
QNBN began rolling out fiber network in Qatar in 2012 and expects to complete construction within three years. The broadband company has agreements to provide wholesale broadband capacity to both Vodafone Qatar and former telecom monopoly Ooredoo.
Vodafone Qatar, the country’s No.2 mobile operator by subscribers, will buy QNBN, comprising 21 million shares at a par value of 10 Qatar riyals ($2.75) per share.
That would equate to a deal worth 210 million riyals, although Vodafone Qatar did not say whether it would actually pay par value for the shares, Reuters reported.
“Completion of the transaction is conditional upon regulatory approvals and consents, completion of due diligence, agreement on the consideration payable, the arrangement and provision of funding to finance the acquisition and entry into of a definitive share purchase agreement,” Vodafone Qatar said.
Vodafone Qatar had a 33.8 percent share of Qatar’s mobile subscribers as of March 31.
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