Qtel Rallies Most in Three Months on Wataniya Offer: Doha Mover

Qatar Telecom QSC rallied the most in more than three months after it offered $2.2 billion for the remainder of Kuwait’s National Mobile Telecommunications Co. (NMTC) as the company steps up acquisitions amid competition at home.

Qatar Telecom, majority owned by the gas-rich country’s government, rallied 3.3 percent, the most since May 10, to 108.9 riyals at the close in Doha. The shares pushed Qatar’s QE Index up 0.8 percent to 8,486.96, the highest since May 28. Shares of Vodafone Qatar (VFQS), which competes with Qatar Telecom, slipped 0.8 percent.

Qatar Telecom will pay 2.6 dinars ($9.2) each for the 239.4 million shares it doesn’t own after approval from the Kuwait Capital Markets Authority. That’s an 18 percent premium to 2.2 dinars when the stock last traded on June 25. Shares of National Mobile, also known as Wataniya Telecom, have been suspended since the offer was announced.

“It’s reasonably priced,” said Umar Faruqui, a financial analyst at Kuwait-based Global Investment House KSCC. “Our fair value is 2.59 dinars. One of their strategies is to increase their stake in companies which are performing well, so Wataniya is one of them.”

Eight analysts recommend investors buy the shares of Qatar Telecom, according to data compiled by Bloomberg. The nation’s biggest phone company said last month second-quarter profit dropped 11 percent because of “adverse foreign exchange movement in Indonesia and Algeria.”

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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