Qtel has reached agreements to double its shareholding in Asiacell, the Iraqi mobile operator, to 60% for $1.47bn. Qtel, however, will initially increase its ownership in Asiacell to only 53.9% with the further increase in shareholding subject to Iraqi government and regulatory authority approval.Under Iraqi law, foreigners can only own up to 55% of a local telecoms company. Qtel will require approval from the Iraqi government and regulator to further lift its stake to 60%, it said. “The transaction will be financed from existing funds”, Qtel said yesterday.Qtel Group chairman Sheikh Abdullah bin Mohamed bin Saud al-Thani said: “Asiacell is an outstanding business and has seen excellent performance year on year. The Iraqi market is about to enter a period of rapid broadband and data growth and Asiacell is well positioned to meet the demands of the population for high quality, reliable and affordable voice and data services.“This acquisition is in line with our long-term strategy of active portfolio development through which we seek to increase our ownership in companies with significant potential. Qtel is committed to reinforcing Asiacell’s position as the leading communications company in Iraq and will be investing significantly into this vision.“Asiacell has already delivered significant value to its shareholders and is expected to continue to do so. We remain committed to sharing this successful and important company with the Iraqi public and we continue to work hard on preparing for Asiacell’s landmark IPO planned for later this year.Asiacell is a very important company for the Qtel Group. We continue to expand our regional footprint and diversification of our revenue sources. More than 80% of Qtel Group’s revenues are now generated outside Qatar.”Faruk Rosool, chairman of the Asiacell board and pioneer of GSM in Iraq said, “I am proud of Asiacell’s achievements to date. We have created a company that has consistently delivered strong results and that is looking forward to more growth in the future, especially in data and broadband services. Our relationship with the Qtel Group has been very successful for us and they have helped us achieve the market position that we now enjoy. They are regional leaders in communications and will invest with us in the next stage in our journey as we strive to be simply the best communications company in Iraq. I am committed to the future of Asiacell and I will stay involved with the business as a shareholder and as chairman going forward”Qtel is fast expanding across the region and aims to become one of the 20 biggest telecom companies in the world by 2020. In 2010, it partnered with Princesse Holding of Tunisia to acquire Cairo-based Orascom Telecom Holding’s 50% stake in Telecom Tunisie for about $1.2bn, a holding that was increased in 2011 to 75%. The Doha-based telecoms operator said it continues to work on preparing Asiacell for its initial public offering planned for later this year. Asiacell provided about a fifth of Qtel’s revenue in the first quarter, while Iraq’s mobile operators have yet to launch 3G services and fixed-line broadband infrastructure is in its infancy. Asiacell is estimated to have a 38% share of Iraq’s mobile subscribers. Zain’s Iraqi unit has 53%, while France Telecom affiliate Korek has 9%. The three operators were awarded 15-year mobile licences in 2007. These licences required them to launch initial public offerings to sell 25% of their shares by the end of August 2011, but all three have yet to do so.“We continue to work hard on preparing for Asiacell’s landmark IPO planned for later this year,” Sheikh Abdullah added. (With inputs from Reuters, Dow Jones)