Etisalat offers to increase Mobily stake in deal worth $2.2bn
Etisalat has offered to increase its stake in Saudi Arabia’s Etihad Etisalat Company (Mobily) in a deal that could be worth more than $2.2 billion.
The UAE-based operator holds a 28% stake in Mobily, with plans to raise this to 50% if the deal were to go through.
In a statement released on Wednesday, the company said it “aims to deepen the strong existing ties with Mobily” while opening the door for future collaboration.
Taking a larger share in Mobily would certainly fall in line with Etisalat’s aim given that the Saudi operator occupies 40% of the telecom industry in the biggest Gulf economy.
Mobily owns the largest fibre-to-the-home network in the region and one of the largest data centre systems in the world.
The firm’s profits were up 37% in 2021 with revenues totalling 14.8 billion riyals, its highest revenue increase in three years.
Mobily shares rose 9.9% to 42.25 riyals as news broke of Etisalat potentially increasing its stake in the company. Etisalat shares, meanwhile, were up by 1.4%.
Etisalat has reportedly proposed a price of 47 riyals per share as the firm looks to expand its footprint in the Middle East.
No agreement has been reached yet as the companies remain at the discussion stage of negotiations.