Etisalat mulls fresh bid for Syria mobile licence

Etisalat says it may take another look at its aborted bid for a mobile licence in Syria.

Etisalat, the UAE's biggest telecommunications company, is considering a fresh bid for a mobile licence in Syria - if the terms are right.

Etisalat pulled out of the bidding for the Syrian licence in March, following the onset of unrest in the country.

"Etisalat remains prudent in exploring opportunities to expand its international footprint. If the terms of the Syrian mobile licence are changed, Etisalat will analyse the new terms," said the company, which is based in Abu Dhabi.

It recently said it would continue with its overseas expansion plans despite the collapse earlier this year of its attempted takeover of Zain, a Kuwaiti rival.

Despite ongoing political difficulties in Syria, analysts said Etisalat must keep looking outside its native market, even to countries experiencing unrest.

"If you look at the long-term point of view, it makes sense," said Chandresh Bhatt, a telecoms analyst at Global Investment House. "Licence terms are always for a long-term period and [outbreaks of unrest] are short-term events."

Overseas expansion was still needed to offset lower profits in the Emirates, Mr Bhatt said.

On Tuesday, the rival telecoms provider du announced it had secured a US$220 million (Dh808m) three-year loan facility to finance an upcoming Dh3 billion loan due for repayment this month, as it builds up expansion plans to make inroads into Etisalat's stronghold of Abu Dhabi.

Etisalat said yesterday it did not intend to raise capital at the moment, adding that speculation of looming bond and sukuk issuances was unfounded. "Currently the corporation has no such need for issuance."

Etisalat has Dh12.8bn of cash and equivalents on its balance sheet. The company's capital expenditure of Dh1.11bn, meanwhile, was 28 per cent down in the first quarter compared with the same period last year.

Etisalat's profit after payment of royalties to the UAE Government amounted to Dh1.8bn for the first quarter, a decrease of 9 per cent on the same period last year.

The company's shares rose 0.9 per cent to Dh10.70 a share in trading on the Abu Dhabi Securities Exchange yesterday.