STC takes controlling stake in Viva Kuwait

Saudi Telecom Co. (STC) will buy 128.86 million shares, or an additional 25.8 percent stake in Viva Kuwait Co., taking majority control of the telco following the close of a voluntary tender offer.

Saudi Arabia’s largest telco will pay KWD 1 per share (SAR 12.34) for the acquisition, which is valued at SAR 1.59 billion, to raise its stake in Viva to 51.8 percent from 26 percent.

STC will seek approval from relevant authorities in Kuwait in order to close the transaction in compliance with rules and procedures; including the final count of shares, and transfer of funds and ownership, the company in a statement to the Saudi bourse.

In November, STC submitted a voluntary tender offer to the Kuwaiti market regulator to acquire the remaining 74 percent in target.

Kuwaiti CMA last Monday approved STC’s acquisition offer at KWD 1 per share (equivalent to SAR 12.37 per share).