Mobile operators in Iraq prepare for the IPO process (Iraq)
Iraq’s Communications and Media Commission has reportedly asked the country’s three operators, Zain Iraq, Asiacell and Korek to offer a quarter of their shares on the Iraq Stock Exchange by August 2012. As per industry sources, the IPO (Initial Public Offering) process could raise over US$ 3 billion for the three operators and if successful, could also double the size of the country’s stock market to $ 8 billion.
However, sources claim that concerns have been raised over the ability of the domestic investors to carry the expected size of the flotation given the challenging capital markets elsewhere in the world. According to reports, in an attempt to increase the shareholder base, banks are considering bringing in international investors along with the domestic investors.
As per sources, the banks chosen for the process include Citigroup, BNP Paribas and NBK for Zain Iraq; HSBC and Morgan Stanley for Asiacell while Korek is yet to finalise its advisors for the deal.
France Telecom still in talks for Iraq’s Korek
France Telecom’s Chief Executive Stephane Richard states that the company is in early negotiations to acquire a minority stake in Cambodian telecommunications operator Mobitel and is continuing talks to acquire a stake in Iraqi operator Korek, as the group seeks to expand its presence in emerging markets.
According to him, the work on Korek continues…there is no concrete timeframe but they’ve been talking for a while now and hope to conclude talks in the coming weeks.
Richard added that France Telecom is hoping to enter Iraq with a partner, which he declined to name, though. It’s a financial partner with logistic operations with which they operate already elsewhere. Talks on Cambodia are less advanced; entering Cambodia would allow the group to set foot in an additional emerging market.
France Telecom is also monitoring the situation in Algeria, which it still considers an attractive country to expand into. The group would be interested in investing there but there currently isn’t any concrete project and the group isn’t holding any talks with anyone.
France Telecom to buy minority stake in Iraq’s Korek
If sources are to be believed, France Telecom is close to signing an agreement to acquire a minority stake in Iraqi mobile phone operator Korek Telecom. The deal would represent a moderate investment for the French telecom operator.
Buying a stake in Korek would be in line with France Telecom’s goal to double revenue in emerging markets over the next five years. The group has been keen on boosting revenue in markets mainly across Africa and the Middle East to offset slowing revenue growth in mature markets.
Korek Telecom was awarded Iraq’s third national mobile license in 2007 and currently has around three million clients in the country.
Zain, Asiacell receive favourable schedule for license payments (Iraq)
www.WirelessFederation.com/news: More favourable terms have been provided to Iraqi mobile operators Zain and Asiacell for paying their government license fees, in exchange for a pledge to improve services.
The services of the companies will be monitored for a year by the government and after meeting the service standards the balance of the fees due over five years can be paid by them. Zain and Asiacell have already paid USD 625 million each of the total licenses cost of USD 1.25 billion.
Last year the government slapped fines totaling more than USD 20 million dollars on Zain, Asiacell and the third operator Korek for poor service and for not honoring contracts.
MTC Atheer passes three million mark
MTC Atheer, one of the three nationwide cellcos operators in Iraq, has announced that it has signed up over three million subscribers since first launching commercial operations in March 2004. In a statement Ali Dahwi, the firm’s chief executive, said that USD430 million had been invested in the Iraqi market in that time, and further money would be injected in the future to expand MTC’s infrastructure in the north. According to TeleGeography’s GlobalComms database the three nationwide operators, MTC Atheer, Asia-Cell and Iraqna (Orascom Telecom Iraq), had a 30% market share each, with the remainder split between Kurdistan operators Sana Tel and Korek Telecom.
Source- telegeography Wireless Mobile Telecom
