Foreign buyers snap up most of Asiacell shares

BAGHDAD: Foreign investors bought more than two-thirds of Iraqi mobile operator Asiacell’s  $1.35bn share sale, with parent Qatar Telecom (Qtel)  expected to have increased its stake.
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The share offer was one of the Middle East’s biggest in the last few years, and was seen as a test of investor confidence for future deals as Iraq recovers from years of war, political instability and financial sanctions.
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Domestic rivals Zain Iraq, a subsidiary of Kuwait’s Zain , and France Telecom affiliate Korek are also required to sell shares under the terms of their licences, having missed an August 2011 deadline, along with Asiacell.
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Taha Abdulsalam, Chief Executive of the Iraq Stock Exchange (ISX), said yesterday it had received orders for all 67.5 billion Asiacell shares on sale, comprising 25 percent of the company’s share capital.
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Qtel, which owned 53.9 percent of Asiacell before the sale, was expected to increase its holding, Layth Sulaiman, head of the exchange’s board of governors, said last week. 
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Ali Al Mukhtar, a local broker, yesterday said most buyers were foreigners, with Qtel the main acquirer. Qtel was not immediately available to comment. 
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Qtel in June agreed to pay $1.5bn to raise its stake in Asiacell to 60 percent from 30 percent, with the remaining 6.1 percent pending regulatory approval.  
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