By: Ahmad Awad
Kuwait-Mubasher: Kuwait Competition Protection Authority has requested Kuwait Telecom (Viva) to provide detailed information on its market share in the Kuwait’s telecoms market, leading to speculations whether the deal with Saudi Telecom (STC) will be sealed.
Analysts noted that the request aims to reveal whether the company’s share in the market exceeds 35%; the ceiling after which Viva will be considered in a monopoly position and therefore its deal with STC will be rejected.
STC has submitted a request to Kuwait’s Capital Markets Authority to raise its stake in Viva to 100% from 26%.
Viva’s market share amounts to KWD 460 million ($1.5 million), while STC intends to buy a share of KWD 340.4 million ($1.1 billion). Sources earlier told Mubasher that the estimated price offered by STC to purchase Viva’s entire shares is ranging between KWD 1.06 and KWD 1.08; the same market price of the stock.
Meanwhile, STC’s acquisition will lead to Viva’s delisting from the Kuwaiti stock market.
