Just last year, e& had big plans to increase its share in Mobily from 27.99% to a majority 50% plus one share. Mobily isn’t just any player in the telecom scene – it owns a solid 40% slice of the Saudi market and has been holding its ground against competitors like stc (Saudi Telecom Co.) since it first hit the scene in 2005.
The deal, if it had gone through, would have seen e& buying the additional stake in Mobily at SR47, as per the conversation back then. But, that’s all on hold now. The other key player holding shares in Mobily is Saudi Arabia’s General Organization for Social Insurance.
What’s happening from e&’s side?
They’ve officially called off talks about upping their stake in Mobily. After a period of negotiations, it seems they couldn’t find a mutually agreeable path to clinch the deal. As of now, e& is choosing to step back from this financial move.
But what does this mean for Mobily’s shares?
They’re currently trading at SR49.40 on the Saudi Tadawul, just shy of their 52-week high of SR50. Despite not going forward with the acquisition, e& remains the largest shareholder in Mobily and is still optimistic about its future prospects, especially given the fast-growing Saudi market.
e& has been known for some bold acquisition moves lately, both in consumer and enterprise sectors, and even in the international arena, grabbing stakes in major telecom entities. This decision marks a notable shift in their recent strategy.
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