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Saudi Telecom ‘plans major acquisition’ in 2012
24 October 2011
Saudi operator STC plans takeovers in 2012 to capitalise on ‘buyer’s market’ and expand regional footprint
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STC
Saudi Telecom
Saudi Arabia
Axis
Oger
Saudi Telecom chief executive Ghassan Hasbani says his firm is looking at major takeovers in the Middle East in 2012 to improve its footprint in the region. Hasbani told Reuters: “I see 2012 as a year of potential acquisitions. We are now in more acquisitions mode than before.”
He added: “The market value of those assets is remarkably higher than the value that was paid for it three and a-half years ago. We have created a lot of value in the operations and assets through synergies.”
STC already has considerable stakes in several companies including an 80% stake in Indonesian operator Axis and a 35% stake in Oger Telecom.
Hasbani told Reuters: “We are not doing due diligence but we are analyzing potential opportunities. Given market conditions and the global economic situation, it is a buyer’s market, no doubt. We are looking at opportunities that complement our current footprint and strengthens our investment portfolio and we are looking to focus on the Middle East region in markets where there is a good opportunity and a reasonable outlook on stability.”
STC, whose net profit for the third quarter fell considerably due to forex losses, said that it is not very concerned about funding for the plans.
Hasbani said: “We have a lot of access to cheap funding and capital that would not be an impediment as long as we maintain a good level of rating and we maintain a good level of dividend payout. We look at debt financing usually and that is available for a company like us at good rates.” GTB