Trowers & Hamlins advises on USD3.8 billion purchase of a controlling stake in 'Wataniya' - Kuwait's second mobile telecoms operator

Wataniya has over 10 million subscribers and owns mobile telecoms assets in Algeria, Iraq, the Maldives, Palestine, Saudi Arabia and Tunisia as well as Kuwait.

The controlling interest in Wataniya is being purchased from a consortium of shareholders led by Kuwait Projects Company (KIPCO) advised by Morgan Stanley. The financial adviser to the Qtel team was ABN AMRO.

The acquisition is the largest ever transaction of shares in a KSE listed company and is the second record breaking telecoms deal that Trowers & Hamlins' has scooped this year. Both deals were led by partner Abdullah Mutawi who is the head of the firm's new International Telecoms Team.

In January Trowers & Hamlins advised Cable & Wireless on the US $506m sale of their stake in Batelco the Bahraini telecoms company. The Batelco deal was also the largest ever transaction of shares in a Bahraini listed company and the country's largest ever telecommunications transaction.

Qtel currently operates or has key strategic mobile investments in Qatar, Oman, Singapore and Indonesia and is one of Qtar's largest publicly listed companies.

Comments Abdullah Mutawi: "We are very proud to be involved in such a significant deal for Qtel and one which has significantly added to Qtel's rapidly expanding international footprint."

"This deal underscores the huge appeal of emerging markets for telecoms M&A activity where massive growth potential and attractive synergies are proving to be a magnet for operators seeking to propel themselves onto the global stage. The proportion of these deals led by Middle Eastern telecoms operators is quite remarkable."

Abdullah Mutawi, described the negotiations for Wataniya as "marathon" but says that he found it incredibly satisfying to be leading the team advising on an M&A deal of this magnitude.

Adds Abdullah Mutawi: "Working with Qtel on a number of their important projects over the past year has been an enormous pleasure. What makes this deal especially satisfying is that it really puts our International Telecoms practice on the map. I think Qtel's decision to instruct us vindicates our commitment to invest in bringing together a formidable team of specialist telecoms lawyers with both regional and international experience."

Abdullah Mutawi was assisted by senior corporate finance associate Patrice Michaud, also based in the firm's Bahrain office.