Kuwait to Sell $535m Stake in Mobile Firm

The Kuwaiti Government announced Wednesday that it would be selling half of its stake in Mobile Telecommunications Company (MTC), the country’s biggest, oldest, and most profitable cellular telephone company, reports said. 

Deputy Premier Mohammed Dhafallah Al Sharer was quoted as saying that “the government will offer half of its shares of MTC valued at around $535 million to the public between April 2nd and April 16th.” 

In reaction, a majority of the 21 deputies during a parliament session approved a non-binding recommendation that called for a halt to the government plans to sell its 113 million shares. The government said it would only comply partially with the recommendation by meeting with the House finance and economic committee to discuss the issue, according to Kuwaiti papers. 

However, the government said it was still planning to make available to Kuwaiti citizens about 50 percent of its 49.2 percent stake in the mobile telephone company for a discounted 1.45 dinars ($4.73) per share. 

The stock usually sells for around 1.82 or 1.95 dinars per share. MTC’s net profit in 2000 stood around 70 million dinars ($228.7 million) – Albawaba.com