As a party to the selling consortium controlling 51% of National Mobile Telecommunication Company K.S.C. (NMTC), UGB has entered into an agreement with QTEL International Investments L.L.C. to sell, for an amount of US$ 157 million, its shareholding in the company as well as UGB’s 9% stakes in each of NMTC’s Iraqi and Algerian operations. The transaction, upon its successful completion including necessary regulatory and other related approvals and release of escrow, will result in a gain to UGB of about US$ 96 million which will probably be largely recognized in the first quarter of 2007. (UGB’s profits for the twelve months of 2006 were US$ 101.5 million).
UGB Managing Director and KIPCO Asset Management Company (KAMCO) Chairman, Masaud Hayat, commenting on the sale, stated: “This was an opportune time to exit from these investments at an attractive price. In addition to organic growth capital requirements of our universal banking network, we are evaluating a number of new investment opportunities into which these proceeds will be partially redeployed.” UGB’s Chief Executive Officer, William Khouri, continued: “With this excellent boost to 2007 net income we are assured of achieving a fifth year of historic earnings. UGB’s existing high quality and diversified portfolio still holds a significant upside which we hope to continue to realize over the coming years,” he concluded.
