Mobily raises SAR 1.5bn in financing for Bayanat buyout
Etihad Etisalat Co. (Mobily) has successfully arranged a SAR 1.5 billion Islamic financing to finalize the acquisition of data communication infrastructure company “Bayanat Al Oula”.
The financing is based on a Murabaha acquisition financing facility, arranged by three major Saudi banks – Samba Financial Group, National Commercial Bank and Saudi British Bank. The structure of the facility is subordinated acquisition debt for one year term, which can be extended on maturity for another 6 months on the same terms and conditions. Samba Financial Group has been retained as Financial Advisers to Mobily to structure this financing.
“Mobily would like to take this opportunity to extend its sincere thanks to the management of Samba, NCB and SABB for their continued trust in Mobily and its management” said Thamer Alhosani, Mobily’s Chief Financial Officer.
“Once again, the banking community swiftly responded to company's request for arranging the SAR 1.5bn acquisition financing, to achieve its strategic objective of becoming a fully integrated telecom company with this acquisition." Mr. Khaled Al-Kaf – Mobily’s CEO has stressed that the continued support from the banking community has allowed the company to expand quickly and to continue to meet and exceed the customers expectations and their future needs.
Mobily and Bayanat shareholders signed an MOU last September to acquire the 99.9% of Bayanat Al-Oula’s ownership. CITC (Communication and Information Technology Commission) has formally approved the acquisition request earlier this month.
With the acquisition of Bayanat, Mobily’s stake in a 12,000 kilometer national fiberoptic network has increased from 33.3% to 66.6%.
Mobily’s acquisition of Bayanat Al Oula is a strategic step forward for the company into transforming itself from a mobile operator into a fully integrated telecom service provider, and comes in line with Mobily’s strategic thrust into the broadband Internet market segment, as well as the lucrative wholesale business.