Mobily ends interest in Atheeb Telecommunications
30 May 2014 | Kavit Majithia
Saudi Arabia-based Mobily has pulled out of talks to acquire fixed-line operator Atheeb Telecommunications.
Mobily had signed an MoU late last year with four of Atheeb’s founding shareholders to acquire a controlling stake in the company, but Mobily decided to decrease its interest with the aim to only acquire 20% earlier this year.
The company has now decided to end talks altogether, according to a statement.
Atheeb has struggled to compete with Saudi Telecom Co (STC) in its home market, and has approximately 200,000 customers.
Mobily was reportedly interested in acquiring Atheeb’s landline licence in a bid to enhance its mobile and fixed broadband services portfolio.
Atheeb posted a loss of approximately $66.4 million for the 12 months ending March 31.