Global Investment House “Global” announced today that it sold its stake in a Jordanian mobile telecommunication company that it acquired last September to Bahrain Telecommunications Company (Batelco).
Global and Batelco signed the sales agreement in Amman, Jordan, by which the later will buy Global’s 14% stake in Umniah Mobile Telecommunications, receiving an expected net profit of 7.5 million Kuwaiti Dinars (USD25.9 million).
Mrs. Maha K. Al-Ghunaim, Global’s Vice Chairman and Managing Director said the company purchased the shares last September due to the promising investment prospects it represented and as part of Global expanding investments in the Hashemite Kingdom and the MENA region.
“The shares sale does not affect our plans and belief in the Jordan's economy; rather, it is part of our continuous investment activity in the Jordanian market and in the region.”
Global bought the share in the Umniah, the third mobile telecommunication provider in Jordan, in cooperation with Kuwaiti investors. According to the sales agreement, Batelco plans to buy 96% of Umniah from the different shareholders, one of which is Global’s stake, in a deal totaling about KD120 million (415 million dollars).
Global expected total profit is KD7.5 million once the agreement is finalized next Wednesday. The company is also the financial advisor to the parties involved in the deal.
Al-Ghunaim stressed that the deal demonstrates Global’s ability to invest directly in unlisted companies and promising sectors, and to exits at the right time to benefit both the company and investors.
Uminah is the third and newest mobile telecommunications provider in the Jordanian market. It launched its services in July 2005 to provide technological mobile communications services never offered. Umniah's operates a 2.75G network with high quality sound coverage and superior information services. The company obtained its operation license in August 2004.
