Etisalat Subscribes To Shrs Worth AED69M In Qatar Telecom Rights Issue

Tuesday, May 29, 2012

DUBAI (Zawya Dow Jones)--Abu Dhabi-based Emirates Telecommunications Corp. (ETISALAT.AD), or Etisalat, said Tuesday it subscribed to shares worth 69 million U.A.E. dirhams ($18.8 million) in Qatar Telecom's (QTEL.DO) recently completed rights issue.

The Doha-based telco raised 6.8 billion Qatari riyals ($1.9 billion) through a 40% rights issue this month to boost its authorised share capital and help fund acquisitions abroad. Qtel on Monday said the issue was fully subscribed and it would use part of the proceeds to refinance existing debt.

Etisalat, which has owned a 1% stake in the Qatari company since 1998, subscribed to the rights issue at QAR75 per share, it said in a statement posted on the Abu Dhabi bourse website.

Qtel has expanded across the region and wants to become one of the 20 biggest telcos in the world by 2020. Etisalat meanwhile is reassessing its growth plans and will focus on its existing operations, after being forced to exit the Indian market earlier this year.

Qtel is cross listed on the stock markets in Doha and Abu Dhabi. Its shares closed 0.4% lower at QAR115.40 on the Qatari bourse Tuesday.

-By Nikhil Lohade, Dow Jones Newswires; +9714 446-1694; nikhil.lohade@dowjones.com; Twitter: @ZDJnews

(END) Dow Jones Newswires

29-05-12 1148GMT