Kuwait: Sima Capital Investments announced that its recent acquisition of a major stake in Reach Telecom Holding Company operating in and outside of Kuwait, as part of its strategy to invest in the Telecommunications sector.
Mr. Dhari Al-Mutawa, Chairman, Sima Capital, said in a press statement, "With the grace of Allah, we were able to recently acquire a 40% stake in Reach Telecom Holding Company, an entirely Kuwaiti company working in the Middle East and East Asia in Mobile Virtual Network Operations (MVNO) and Mobile Value-Added Services (MVAS)."
"We came to this decision after scrutinizing the recent activities of Reach Telecom during the past few months, who was able to achieve high and exceptional returns in 2009 through multiple investments, the last of which was to obtain a fourth operator license in Malaysia."
Reach Telecom recently acquired the first mobile network operator license in accordance with the Islamic Sharia'a law in Malaysia, making it the first GCC company to be able to work in the largest developing Asian Islamic country.
AlMutawa stated "What encouraged us to take the decision is Reach's ability to form a unique partnership and "harmony" with its partners in Asia. The company also displayed a vision and courage to adopt new ideas and execute them after proper due diligence."
Furthermore, "Mobilink" Communications- a wholly owned subsidiary of Reach Telecom Holding Company, witnessed a growth of 134% during 2008-2009, "which is another reason that persuaded us to invest in the company," he stated.
It is worth mentioning that Sima specializes in investing in medium-sized companies with exceptional potential and growth prospects, and work with them as partners to help them realize their vision and promote further investments.
"I think that our partnership with Reach Telecom is a landmark step, and will help diversify our investment portfolio in the Telecommunications sector."
Engineer Waleed Al Sayegh, Chairman of Reach Telecom, expressed his delight on having Sima Capital as a key partner because of its ambitious management and common investment aspirations.
"We view this partnership as support to our ambitious plans and our expansion projects in the region and East Asia. Our company is always in search of better investment opportunities in MVNO and MVAS companies that deliver high returns on invested capital."
According to Eng. AlSayegh, the company has recently obtained the fourth operator license in Malaysia, making it the first GCC Company to get this license. The Company will be launched in Malaysian market under the name "SALAMFONE". It will be also the first mobile telecommunications company to provide services that adhere to the Islamic Sharia'a in Malaysia and the world.
He followed by saying, "As of now we are gearing up to operate the first mobile network virtual operations (MVNO) in the Kingdom of Saudi Arabia. The Company will be the first MVNO provider in KSA," As of now AlSayegh did not reveal the name of the Saudi partner or the MVNO.
In conclusion, Eng. AlSayegh affirmed the two companies "Look forward to a healthy partnership to create the largest investment portfolio to implement an ambitious expansion plan in the telecommunications sector in the region. The portfolio value is slated to exceed 300 million dollars."
Gulf Strategic was the strategic and financial consultant for the deal.
Mr. Rami Shabbak, President of Reach, said "This transaction is the most important transaction carried out by Sima Capital according to the strategic plan designed to expand in the field of Telecommunications.
