An unconfirmed US$1.6 billion bid is reported to have been made by France Telecom’s Orange for a 51% stake in the Iraqi mobile operator Korek Telecom; while a rival operator also vies for a minority stake in the venture - according to various stories today.
Nothing, however, has yet been finalised. Humam Amara, chief executive of Korek, said the deal was still in discussion. “We haven’t signed anything with Orange,” he told Abu Dhabi’s The National. “We’re in discussions with another foreign, publically listed company, but I can’t tell you because we signed [a non-disclosure agreement] with them.”
With an estimated 2.55 million subscribers as of 30 September 2010, Korek is Iraq’s third largest mobile network in terms of numbers. The company was awarded a national mobile operator’s licence in 2007, after firstly establishing itself in Kurdistan.
Korek is now seeking to sell a stake of between 35% and 49%, Humam Amara told The National. Valuing the company at about $3 billion, he said: “The market in Iraq leaves huge room for growth and [a deal] positions ourselves to grab our fair share of the market. We’re basically looking for a partner that we can create synergies with, both financially and managerially.”
Meanwhile, both MEED and the Financial Times cites source close to the deal as saying France Telecom is keen to secure a controlling stake in Korek, with the former publication today stating a $1.6 billion bid is now on the table.
The UAE telecommunications company Etisalat expressed an interest back in 2008 for a 51% stake in Korek Telecom, however that deal failed to materialise. Now in the midst of acquiring Kuwait’s Zain telecommunications group, Etisalat is poised to operate Zain’s existing mobile network in Iraq.
http://www.rapidtvnews.com/index.php/201012019141/france-telecom-in-the-frame-for-stake-in-iraqs-korek.html
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