KUWAIT, March 14 (Reuters) - Kuwait's Mobile Telecommunications Co (Zain) said on Saturday it would pay $324 million for a 31 percent stake in telecom firm Wana, a unit of Morocco's biggest conglomerate ONA.
'Zain in a 50/50 partnership with Al Ajial Investment Fund Holding...has agreed to invest through a newly established joint venture...$324 million in return for 31 percent of Wana,' a Zain statement said.
'With 22.5 million mobile customers representing about 70 percent penetration, Morocco is an exciting new region for Zain to extend our footprint to 23 countries,' said Saad al-Barrak, chief executive officer of Zain, in the statement.
Zain, one of the largest regional mobile operators, has been spending billions of dollars to expand abroad as competition heats up at home, where VIVA, an affiliate of Saudi Telecom , has recently started operations.
The firm committed more than $3 billion in 2008 for network upgrades and expansion in countries such as Ghana, Iraq, Nigeria, Saudi Arabia and Sudan, Barrak has said.
Wana said in February it had won Morocco's third wireless phone network licence, part of a government drive to liberalise the telecoms sector and cut prices.
The company, which currently offers limited-range mobile, fixed-line and Internet services, saw its revenue jump almost three times in the first half of 2008 as it invested heavily to expand in Morocco's main cities.
ONA fired its chairman last year due to soaring costs at Wana, which competes with Maroc Telecom and Meditel in Morocco's fast-growing but competitive telecoms market.
Wana has said it plans to detail its investment strategy early this year.
(Additional reporting by Tom Pfeiffer in Rabat)
(Writing by Firouz Sedarat; Editing by Keiron Henderson) Keywords: ZAIN MOROCCO/WANA (Gulf newsroom; dubai.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'Zain in a 50/50 partnership with Al Ajial Investment Fund Holding...has agreed to invest through a newly established joint venture...$324 million in return for 31 percent of Wana,' a Zain statement said.
'With 22.5 million mobile customers representing about 70 percent penetration, Morocco is an exciting new region for Zain to extend our footprint to 23 countries,' said Saad al-Barrak, chief executive officer of Zain, in the statement.
Zain, one of the largest regional mobile operators, has been spending billions of dollars to expand abroad as competition heats up at home, where VIVA, an affiliate of Saudi Telecom , has recently started operations.
The firm committed more than $3 billion in 2008 for network upgrades and expansion in countries such as Ghana, Iraq, Nigeria, Saudi Arabia and Sudan, Barrak has said.
Wana said in February it had won Morocco's third wireless phone network licence, part of a government drive to liberalise the telecoms sector and cut prices.
The company, which currently offers limited-range mobile, fixed-line and Internet services, saw its revenue jump almost three times in the first half of 2008 as it invested heavily to expand in Morocco's main cities.
ONA fired its chairman last year due to soaring costs at Wana, which competes with Maroc Telecom and Meditel in Morocco's fast-growing but competitive telecoms market.
Wana has said it plans to detail its investment strategy early this year.
(Additional reporting by Tom Pfeiffer in Rabat)
(Writing by Firouz Sedarat; Editing by Keiron Henderson) Keywords: ZAIN MOROCCO/WANA (Gulf newsroom; dubai.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.