Iraqi stock exchange sees Asiacell by June

[wshflthnkn]

http://www.brecorder.com/market-data/stocks-a-bonds/0/1173799/

Iraqi stock exchange sees Asiacell listing by June

Iraq's number two mobile phone operator Asiacell is expected to complete its compulsory listing on the local bourse in the first half of this year, the chief executive of the Iraq Stock Exchange (ISX) said on Tuesday.

With double-digit subscriber growth, telecommunications is the fastest growing sector in Iraq after oil.

Listings for mobile phone companies could boost foreign interest in the stock exchange, which is dominated by banks.

Asiacell, a unit of Qatar Telecommunications and its rivals, Zain Iraq and Korek, have to make initial public offerings as a condition of their $1.25 billion operating licences.

All three companies missed the initial deadline for August 2011 but have said they are working towards listing.

The first key step is for all three to become shareholder-owned firms.

Taha Abdulsalam, the CEO of the ISX, told Reuters that Asiacell had made the most progress and he expected the company to list around June this year.

"Only Asiacell has been transferred into a shareholders' company," he said in an interview.

"They have sent a notice that they are working to meet all the requirements." Asiacell was not immediately available for comment.

Iraq did not have a mobile phone market under Saddam Hussein and the industry has boomed since his ouster in 2003.

Foreign investors were net buyers on the local bourse in 2011 and Abdulsalam said he expected foreign investment to remain high in 2012.

The market capitalisation of the ISX has been steady at around $4 billion over the past year but Abdulsalam said he expected new investment as well as listings to drive that to between $6 billion and $7 billion by the end of 2012.

The average volume traded per session is around $2 million now.

[rightsonword]

Awesome. My advice: make sure you have your money ready in your account so you can quickly buy.

[crackerman58]

http://www.washingto...1-115845-4340r/

Pentagon urges repeal of Iraq phone contracts

The Pentagon has asked the Coalition Provisional Authority in Baghdad to cancel three contracts for Iraqi cell phone networks worth about $500 million annually, citing fraud and the companies’ links to an Iraqi-born Briton with ties to Saddam Hussein.

A June 14 memorandum from John A. Shaw, deputy undersecretary of defense for international technology security, says an investigation uncovered “fraud on the Ministry of Communications by Orascom, Atheer and AsiaCell.”

The companies are suspected of rigging the bids for the cell phone contracts in favor of Nadhmi Auchi, who owns part of Orascom and a controlling interest in the bank BNP Paribas, which “is the French bank selected by Saddam Hussein to run the Oil for Food program.”

“His role in assisting the Saddam regime, to his own immense profit, makes all three firms ineligible under Section 6.1.4 [of the contract] in that all the evidence strongly indicates Auchi had a direct or indirect ownership interest in all three firms at the time of signature, and his role continues today,” the memorandum said.

The Orascom contract contains a provision prohibiting ownership of the license from being held by “supporters or beneficiaries of the Saddam Hussein regime,” the Shaw memorandum said.

If the contracts are voided by CPA Administrator L. Paul Bremer, the three companies could be shut out of the cell phone business and their equipment confiscated until new contract bids are issued.

The memorandum was sent to Mr. Bremer, and a CPA official said it was forwarded to the authority’s general counsel “for consideration.”

Pentagon investigators have said bribes of up to $11.5 million were paid to Iraqis and other foreign nationals to win the contracts for the three companies with links to Auchi, who was convicted last year by a French court as part of an oil company financial scheme.

The contracts were signed in December and allow cellular telephone service to be set up in northern, central and southern Iraq as part of reconstruction efforts.

“Nadhmi Auchi’s name arose as a central figure in the course of our investigation of the telecom tender, and is the reason that the three firms are in violation of [a provision of the Orascom license],” Mr. Shaw said.

Because the fraud took place while the Iraqi Communications Ministry was under CPA supervision, the licenses should be revoked before the June 30 transition to a new Iraqi government, the memorandum said.

Revoking the contracts immediately will allow the ministry and regulatory authorities “an opportunity to immediately recast the conditions of the licenses on Iraqi terms that have no taint of fraud,” it said.

A defense official close to the issue said the failure to revoke the contracts before June 30 “will in effect ratify the CPA role in the corruption of the process over the past year.”

However, if the cell phone licenses are voided, it will “send a clear message to those who would use the transition to ensure the success of similar nefarious schemes in other sectors,” the official said.

U.S. officials said last week that the FBI is conducting a preliminary inquiry into whether Auchi or his associates bribed U.S. and Iraqi officials to fix bids for Iraqi cell phone contracts.

The preliminary probe was prompted by a report by the Pentagon’s International Armament and Technology Trade Directorate that stated that cash payments of up to $11.5 million were made to two Iraqi officials, two British contractors and two Americans as part of the fix.

Orascom was described in the Pentagon report as Auchi’s “principal corporate vehicle” and is made up of several Middle Eastern companies. Atheer is a Kuwaiti enterprise, and AsiaCell is a Kuwait-based consortium made up of U.S., German and Chinese companies. At least one of the Chinese companies is the same one that did business with the Saddam regime.

[pluMmet]

@crackerman58 That article is from 2004. What ever needed to be done about it has been...

[crackerman58]

Wow... another notch in my stupidity belt !

Sorry for not noticing the date on the article... apologies to all !

[Fingers_crossed]

Of course I've been waiting for the RV, but June cannot come soon enough. I have been prepared for quite a while to by Asiacell and Zain stock. The RV gets me frustrated, but owning stock in these companies will make the ride a whole lot easier. Can you imagine the possibilities??

[Butifldrm]

Your article is not old ..just part of it was old ... lol found this today.

April 17, 2012

ERBIL-Hewlêr, Kurdistan region 'Iraq', — According to the Chief Executive of the Iraqi Stock Market (ISX), Asiacell is planning its initial public offering (IPO) in June. Zain contacted also the ISX but no specific timing was mentioned.

The three owners of a national Iraqi license must do their IPO this year to keep their license valid. Korek apparently took no contact with the ISX but considering their loss in 2011 it is unlikely that they will convince any investor.

But let us see what could convince an Iraqi citizen to invest in a Kurdish telecom company like Asiacell and what would be the valuation?

Everyone remember that Qatar telecom bought 40% of Asiacell from the Kuwaiti operator Wataniya in November 2007 for just USD 107M.

This sale was valuing 100% of Asiacell at USD225M, just 1.25 times its net profits of $179.9m in 2006. But in the same time an accounting report showed that Asiacell's financial accounts were in chaos. The auditors cited problems with asset registers, and accounts payable and receivable ledgers, which were further complicated by the alleged co-mingling of assets and liabilities between Asiacell and Faruk Rasool's holding company, Asiacell Iraq.

Since January 2012 the major foreign shareholder Qtel (Qatar Telecom) which owns already 30% of Asiacell is trying to buy out the private equity fund Merchant Bridge which owns 19%. Qtel is advised by Morgan Stanley and Merchant Bridge by Credit Suisse.

Merchant Bridge former CEO Basil Al Rahim was close to key decision makers of the Bush administration and the Iraqi administration (see the details http://pinkindustry.wordpress.com/merchant-bridge/ ) .Unfortunately Al Rahim , his partner Mr.Lahoud, and five other persons including JP Morgan and Asiacell employees died when their when their plane crashed in unknown circumstances over Iraq on February the 5th 2011.

Curiously Merchant Bridge took in 2005 a strategic stake in the tiny Swiss bank “ Frey”, which later was implicated in the Credit Suisse tax evasion indictment released on February 24th 2011.

Not the most exiting partner for the Iraqis; anyway if the sale is concluded with Qtel the valuation will have to be brought to public knowledge and the IPO should obviously be done at the same price. Don’t expect the Iraqi citizens to pay more than Qtel, this must be made clear.

Asiacell is also facing clear trouble in expanding its network in Iraq, having an Iraqi national license does not mean much if outside the KRG there are constantly power disruptions and heavy security problems. Asiacell equipment buildings were bombed on February 3rd and 23rd 2012 in Mosul while they are close to the police station. Asiacell haspotentially 8.7 million subscribers at the end of September 2011, giving it a 34-percent market share, 3% less than in 2010.

Considering Korek failure and the on going Ariafon/Koutroukides/KRG legitimate claim that will be brought to an international court by the time of the IPO; it is likely that this deal will be very cold. At least it will be a good occasion for the numerous money launderers; nobody will really check where the money comes from for the subscription. Further investigation on the matter could reveal interesting details.

http://ekurd.net/mismas/articles/misc2012/4/state6121.htm