Jordan Telecom IPO Dubai

[sharewadi]

Did the Jordan Telecom IPO happen? Not as far as I know, and it's not listed on the DIFX. See also Jordan Telecom 2006 results ...

Arab Press Digest (APD) 09 February 2006:

Jordan Telecom Mulls Listing on DIFX, with France Telecom as Possible Controlling Stakeholder By Shikrallah Nakhoul, APD Staff Writer in Beirut Beirut - Newly restructured Jordanian telecommunications firm Jordan Telecom (JOTEL) could go ahead in March with an IPO on the Dubai International Financial Exchange (DIFX), the CEO Middle East business magazine quoted Jordan Telecom CEO Laurent Mialet as saying this week. "The prospectus is ready," Mialet said. The company, in which the Jordanian government holds 41.5%, had announced in December that it was considering the move. The Jordanian government wants to divest its remaining stake in Jordan Telecom, which completed a restructuring of several subsidiaries into a single organization at the beginning of 2006. Now called Jordan Telecom Group (JTG), the company on Thursday reported an 87.4% improvement in its net income for 2005, to JD 86.4 million ($122 million). However, the public offering may be preceded by a sale of 11% in the company to France Telecom (FT). This sale would increase FT's stake in JTG from 40% to a controlling 51% interest. Negotiations over this acquisition have been going on for over a year, according to media reports. The deal would allow FT to incorporate JTG more directly into its global and regional strategy and would be concluded in March, said sources in the telecoms sector. France Telecom was the main partner of the Jordanian government when the Hashemite Kingdom privatized just under 50% in Jordan Telecom in 2000. FT at the time acquired 40% in Jordan Telecom jointly with Arab Bank in a deal worth $508 million and assumed management control under a contract that is running until 2008. The Joint Investment Telecommunications Company, which holds the 40% stake in JTG since 2000, is owned to 88% by FT and 12% by Arab Bank. Other stakes in JTG are held by Jordan's Social Security Corporation (13.02%) and the public. Problems in finalizing the sale to France Telecom and/or initiating JTG's flotation on the DIFX could arise from disagreements over the price that the French group would have to pay for gaining a controlling interest. The Jordanian government was said to demand a higher payment per share than FT might be obliged to pay under an agreement connected to the initial investment, which gave it a confidential option to acquire a controlling majority. FT also gained the right to block any sale of shares by the Jordanian government that would bar the French firm from acquiring the majority. Nonetheless, the firm's ambitions to gain control over JTG recently encountered new competition from Jordanian businessman Sabeeh al Masri, who bid JD 5 ($7.02) per share for 103 million JTG shares in an offer worth $ 723.06 million. According to wire reports, Masri has investments in many sectors that include banking and tourism in addition to telecommunications. JTG described the prospects for reaching a settlement as positive. "I can say the discussion with the government is going well. As a company we are optimistic about our strategy and our future," Mialet told Reuters. However, FT could face further obstacles from public opinion in its ambition to control JTG, which posted encouraging results for 2005. While JTG's traditional fixed line business reported slight contractions in subscriber numbers and revenues of 1.5% and 2%, respectively, for 2005, the newly integrated subsidiaries offering internet and data connectivity, GSM, and content services, all achieved substantial gains in 2005. Most of JTG's 28% subscriber base growth in 2005 originated from its GSM service, MobileCom, which also achieved a 16% improvement in revenues over 2004. Leased line, aDSL, frame relay and internet business also all showed increases. This growth composition highlights the benefits of Jordan Telecom's restructuring, which the company said on February 5 it accomplished as "integration of the operations of Jordan Telecom, MobileCom, Wanadoo and e-Dimension into a single organization with a single management structure: the Jordan Telecom Group." "By integrating these operations under a single management structure, we are bringing the strengths and capabilities of each of our four operating companies into a single, one-stop-shop operator. Together with this, Jordan Telecom Group will expand its portfolio of services in Jordan and also throughout the Middle East region," JTG said. Other 2005 result figures released on Thursday by JTG showed a higher gross operating income which increased by JD16.7 million or 10.9%, along with lower depreciation expenses which fell by JD 12.3 million or 15%. The following two items had a positive impact on results as well: a non-recurrent gain derived from the sale of investments in Intelsat at JD 3.2 million and lower net finance costs (by JD 1.5 million or 42%) due to the repayments of most loans. On the Amman Stock Exchange, shares in Jordan Telecom rose by JD 0.05, or about 0.84%, to JD 6 in late afternoon trading on Thursday. [TS]

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