Batelco Group completes acquisition of 46% shareholding in Quality Net from Ali Alghanim and Sons
Batelco Group (Ticker: BATELCO), the regional Telecommunications Group with operations across 14 countries, announced today that the acquisition of Ali Alghanim & Sons General Trading and Contracting Company W.L.L. ‘Alghanims’ 46% shareholding in Quality Net has been finalised, following the satisfactory completion of several preconditions. The acquisition increases Batelco Group’s equity stake in Quality Net from 44% to 90%.
Batelco Group announced in February that it had entered into a Share Purchase Agreement with the Alghanims to acquire their 46% shareholding in Quality Net, the leading Internet and Data Service provider operating in the State of Kuwait.
The Batelco Group Chairman Shaikh Hamad bin Abdulla Al Khalifa and the Alghanims representative and Chairman of Quality Net Mr. Khalid Ali Alghanim, signed the Share Purchase Agreement on the 19th of February 2014.
Shaikh Hamad stated, “Part of the Batelco Group’s growth strategy is Portfolio Optimisation and that topping up existing investments such as Quality Net is consistent with such strategy. The acquisition provides the right kind of fit for the Group to enhance future value of its international operating companies by realising cost efficiencies and further telecom upside opportunities.”
“Over the past 15-years Quality Net has developed a competent team of employees led by experienced executives who thrive on creating a reliable service for its customers. We have plans to work very closely with Quality Net’s management to implement a number of strategic initiatives in order to realise the benefits of the acquisition by way of protecting and enhancing shareholder value,” added Shaikh Hamad.
The Batelco Group plans to continue its international expansion drive through targeted acquisitions of other operators and optimisation of its existing portfolio. Quality Net remains the clear market leader in the fixed Data Communications and Internet services industry in Kuwait. In 2013, it maintained market share and position delivering steady results and ending the year with over 40,000 customers. In recent years, Quality Net has launched global managed services in partnership with global players to serve corporate and multi-national companies. Its service portfolio also includes structured cabling, cloud and IT security services for meeting the growing demand from corporate clients, small to medium enterprises, and shopping malls.
For further information, please contact:
Batelco Public Relations Office