Batelco Acquires Umniah

Batelco’s Chairman, Hassan Ali Juma, announced yesterday that Batelco has agreed to purchase a 96% shareholding in UMC for $415M

June 26, 2006

1 Min Read

JORDAN -- Batelco’s Chairman, Hassan Ali Juma, announced yesterday (24th June) that Batelco has agreed to purchase a 96% shareholding in Umniah Mobile Communications (UMC) for $415M. Batelco will purchase the shares of Umniah Telecom and Technologies (UTT); owned by Mr. Michael Dagher and Fouad Al Ghanim and Sons Group, Global Investment House and related management contracts associated with the operation of Umniah. The Underprivileged Student Support Fund in Jordan’s universities will retain the remaining 4% equity in Umniah.

Umniah’s Managing Partner, Michael Dagher and Batelco’s Chairman Hassan Ali Juma, signed the Sale and Purchase Agreement on 24th June in Amman in the presence of other Board Directors and executives from both Batelco and Umniah. Finalisation of the purchase is subject to certain preconditions but full completion is expected by the 28th of June.

Umniah is the latest GSM mobile operator in Jordan offering nationwide coverage with over 460 base stations across the Hashemite Kingdom of Jordan and more than 500,000 mobile subscribers. Umniah started commercial operations late June 2005, focused on innovation and value and has grown rapidly, gaining 13% of the Jordanian mobile market share in the last 12 months.

Batelco’s consolidated accounts, at Group level, are expected to show 14% revenue growth in 2006 and 10% growth in EBITDA (Earnings before Interest, Taxes and Amortization). Mobile subscribers are expected to grow by 120% and reach over 1.2m by the end of 2006.

“The acquisition of Umniah will provide significant profitable growth for Batelco in the expanding Jordanian market and boost the Company’s strategic long term plans,” highlighted Mr. Juma.

Bahrain Telecommunications Co. (Batelco)

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