Investor Looking to Sell Stake in Iraqi Mobile Network

Cellular News - Iraq

Kuwait based logistics company, Agility has corroborated media reports that it is considering selling its minority stake in Iraq's Korek Telecom. A report in the Al-Watan newspaper, citing sources close to the company board of directors said that talks to sell the stake were nearing completion.

In a statement to the Dubai stock exchange, Agility said "The company will always look to exit its investments if that was to the benefit of its shareholders and stakeholders," but noted that there is nothing material to disclose at the moment.

There were reports last year that the UAE's Etisalat was in talks to take a stake in an unnamed Iraqi operator - the only realistic option being Korek Telecom.

The future of Korek Telecom has been in question for some time after a partnership with Orascom Telecom broke down, leaving Korek with a national license, but coverage that is limited to mainly the Northern region of the country. An expansion to national coverage would need the financial muscle of an outside partner.

Agility's private equity unit paid US$250 million for its stake in Korek Telecom in 2007.