The government of Kuwait has announced that it intends to sell off half of its share in Mobile Telecommunications Company (MTC), the country’s longest running cell phone operator.
Speaking to a special session of the country’s parliament, Deputy Premier Mohammad Dhafallah Al-Sharer said that the government will offer half of its MTC shares to the public between April 2 and April 16. The Kuwaiti government currently holds a 49.2 percent stake in the mobile telephone company, estimated to be worth about $535 million.
The parliament, which functions mainly in an advisory capacity, passed a non-binding recommendation designed to block the government move. In response, the government said it would comply only partially with the recommendation, by meeting with the House finance and economic committee.
The government will sell its shares to Kuwaiti citizens at a discounted price of 1.45 dinars ($4.73) per share. The stock usually sells for between 1.82 dinars and 1.95 dinars per share.
MTC’s net profit in 2000 was $228.7 million. — (Albawaba-MEBG)
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