Telecommunications Company (“EITC”) by the Founding Shareholders
The Founding Shareholders of EITC (the “Company”) are offering to sell a total of 800 million shares, representing 20%, of the Company through a public offer (the “Offer”) in the United Arab Emirates. EITC is a UAE public joint stock company incorporated on 28 December 2005 with a fully paid-up capital of 4 billion shares. The Founding Shareholders consist of The Federal Government of the UAE represented by the Ministry of Finance, Mubadala Development Company P.J.S.C. and Emirates Communications and Technology Company L.L.C. who own 50%, 25% and 25%, respectively. Each of the Founding Shareholders will be selling on a pro-rata basis.
EITC was awarded the second telecom license in the UAE to operate a fixed and mobile telephony network for an upfront license fee of AED 124.5 million. The Company plans to offer customers in the UAE an integrated offering of advanced fixed, data and mobile telephony services based on the latest technologies. The Company is currently offering fixed line telephony services through a technologically advanced Next Generation Network based on fiber optics and internet protocol to more than 19,100 business and residential customers in the Emirate of Dubai. Additionally the Company offers Satellite Broadcasting services to a number of regional and international media companies. The Company plans to extend its advanced fixed line network to other areas of the UAE and to launch a nation wide GSM and 3G mobile network by mid-2006. "This Company will be a vital instrument to support the dynamic progress of the national economy. EITC is a purely local company and will not have any foreign operator as a partner. The industry is mature today and we believe there is sufficient talent in the region that will help us build the Company”, said Ahmad Bin Byat. Osman Sultan, Chief Executive Officer of EITC, added “All customers in the country will, for the first time, have the freedom of choice in their selection of a telecommunications company.”
The Offer period is set to commence on 4 March 2006 and will be open to UAE individuals only. The Founding Shareholders will be offering their shares for sale at AED 3.03 per share inclusive of all offering expenses. The sale proceeds will be paid to the shareholders on a pro-rata basis. The Company is in the process of applying to list its shares on the Dubai Financial Market (“DFM”). Trading is expected to commence on the exchange within 10 days of the issuance of the allocation letters. Immediately upon listing, 20% of the Company's shares will be open to non-UAE investors.
EFG-Hermes, the Arab world’s premier investment banking firm, is the Global Coordinator and Financial Advisor to the Founding Shareholders and the Company on the Offering. EFG-Hermes has appointed Emirates Bank International and First Gulf Bank as lead manager and co-lead manager to the offering, respectively. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Bank, Dubai Islamic Bank, Emirates Financial Services, Emirates Islamic Bank, Finance House, Mashreqbank, National Bank of Abu Dhabi, National Bank of Dubai and Union National Bank will also act as Receiving Banks.
Mubadala Development is a Public Joint Stock company, established and wholly owned by the Government of Abu Dhabi with a mission to invest in commercially-viable, strategic, industrial and commercial partnerships. The company manages a diversified portfolio of local, regional, and international investments.
Emirates Communications and Technology Company LLC (ECT) is a subsidiary of TECOM Investments, which is part of Dubai Holding. Dubai Holding currently has companies operating in a variety of sectors ranging from real estate, energy, communication, hospitality and investments.
EFG-Hermes is the Arab world’s premier investment banking firm and the market leader in securities brokerage, asset management, investment banking and private equity. EFG-Hermes was established in 1984 and is today listed on the London and Cairo stock exchanges with a market capitalization of US$ 2.5 billion. In December 2005, EFG-Hermes acted as Global Coordinator and Bookrunner for the Initial Public Offering of Telecom Egypt, raising US$ 892 million and has advised the Saudi Communications and Information Technology Commission in 2004 on the sale of the 2nd mobile license in the Kingdom. The license was purchased by Etisalat following a competitive tender process for US$ 3.5 billion.
