Mubasher: VIVA Bahrain has made an official bid for a 100% acquisition of Nuetel Communications Company, a subsidiary of Ossis Property Developers Company headquartered in Amwaj Islands, Alayam newspaper reported citing sources.
This may be the third acquisition in the Bahraini telecommunications sector since the beginning of 2014, according to the paper.
Ossis Property Developers and Nuetel Communications Company submitted a formal merger request to the Telecommunications Regulatory Authority (TRA) under VIVA Bahrain, the sources said.
The current procedure is to ensure that the deal does not raise any serious doubts and is compatible with the Bahraini telecommunications law, the sources confirmed to the newspaper.
Through this deal, VIVA Bahrain seeks to increase its stake in the fibre optics network in Amwaj Islands, provided by Nuetel Communications, which provides broadband and video services through its wired, wireless, and fibre optics lines, the sources added.
Nuetel is facing financial difficulties after the strong competition in the Bahraini telecommunications sector, in addition to market saturation due to the presence of several telecommunication companies
Since the summer of 2014, Nuetel Telecommunications has been in agreement with Batelco Telecommunications Company and delivers its services to the residents of the Amwaj Islands. The new deal will likely cause some problems in the agreement especially since Batelco and VIVA Bahrain are competitors, the sources told Alayam newspaper.
Viva Bahrain launched its services in March 2010 and is a subsidiary of Saudi Telecom Company (STC).
The Bahraini telecommunications market witnessed the first telecom merger deal in the beginning of 2014 when Kalaam Telecom Bahrain Company acquired Rawabi Telecom and Software. In April of the same year, Kalaam acquired 100% of Light Speed Communications Company, a subsidiary of Jordan Telecom Company.
