November 23, 2015
Kuwait is selling a 26% stake in what will become the country's third mobile operator. Nine groups have submitted offers, including a number of major regional telecoms operators, including Saudi Telecom, Etisalat and Turkcell
Government institutions will hold 24% of the company’s shares, while the remaining 50% will be sold off through an initial public offering.
The deadline for applications has expired, and the bids have been evaluated. Those that met the terms and conditions of the tender will be sent an invitation inviting them to participate in a public bid presentation, to be held on November 27.
The financial bids will be opened for the first time at the presentation, with the stake going to the highest bidder.
Kuwait-listed companies have been allowed by the Kuwait Investment Authority to bid for the licence without the need for a telecoms operator partner.
The Kuwaiti market is not big but competition is very high. The new player will compete with existing mobile operators Zain (formerly known as MTC) and Wataniya Telecom, both of which are facing increasing pressure as the market approaches saturation.