Sunday, Mar 15, 2009
DUBAI (Zawya Dow Jones)--Kuwait's Mobile Telecommunications Co., or Zain, said late Saturday it will pay $324 million with Al Ajial Investment Fund Holding for a 31% stake in telecom firm Wana Corp., a unit of Morocco's Group ONA.
Zain and Al Ajial Investment Fund have setup a joint venture company called Zain Al Ajial for the stake buy, Zain said in a statement. Under the agreement, Zain will assist Wana in launching its new Global System for Mobile Communications, or GSM, license in late 2009.
"With 22.5 million mobile customers representing about 70% penetration, Morocco is an exciting new region for Zain to extend our footprint to 23 countries," Saad Al Barrak, Zain's chief executive officer said.
Zain didn't say how it funded the purchase, but a company spokesperson said last week it could use any of the following for funding: its good credit standing with banks, share swaps or money from a $4.49 billion capital increase in September.
Wana will use the money for its "funding requirements and operational contributions," according to the statement.
Wana offers fixed and restricted mobility wireless services and internet and data services throughout Morocco.
The agreement will see Wana and Zain enter into an operating framework agreement allowing Wana to tap into Zain's purchasing power, products and services.
Wana competes with the likes of Maroc Telecom and Meditel in Morocco.
ONA is listed on the Casablanca stock market and closed up 1.4% at 1,220 Moroccan dirhams ($142.37) Friday. Zain is listed on the Kuwait stock exchange and rose 2.7% to 0.770 Kuwait dinars ($2.60) Wednesday.
-By Maria Abi-Habib, Dow Jones Newswires; +97150 941 9737; maria.habib@dowjones.com
Copyright (c) 2009 Dow Jones & Co.
(END) Dow Jones Newswires
15-03-09 0538GMT
