Qatar Foundation Signs Conditional Purchase
Agreement to Buy Vodafone Europe's Share in Vodafone Qatar
Doha, 26 February 2018: Today, with the presentation of the
encouraging 9 month period ended 31 December 2017, the Board of
Vodafone Qatar P.Q.S.C. (“Vodafone Qatar or the Company”)
announced a number of company changes that re-sets it for the
future.
Extension of License
The Company’s
Telecommunications Networks and Services License (the “License”)
originally granted by the Communications Regulatory Authority
(CRA) for 20 years has been extended for an additional 40 years
to 2068. This will reduce the amortization cost annually from
QR403 million to approximately QR100 million. The Board believes
this will make the Company profitable for the foreseeable
future.
Capital Reduction
The Board has
decided, subject to obtaining the approval of the shareholders
of the Company at an Extraordinary General Assembly (EGA), as
well as all necessary regulatory approvals, to implement a
reduction in the share capital of the Company from QR8.454
billion to QR4.227 billion by means of reducing the nominal
value of the shares of the Company from QR10 per share to QR5
per share in accordance with the relevant provisions of Articles
201 to 204 of the Commercial Companies Law No.11 of 2015, and
the Articles of Association of the Company. This move is
intended to address the accumulated losses of the Company, which
to date stands at QR4.272 billion, largely driven by the
amortization costs of the License. This will have no cash impact
on the Company and will achieve the following goals:
·
Extinguish the historical losses, associated with the
amortization costs of the License;
·
Deliver the long term growth potential of the Company;
·
Attract new investors;
·
Enable future payment of dividends.
Extension of Vodafone Group Plc technical support
agreement
The Board has
agreed to continue its long term partnership with Vodafone Group
Plc by agreeing to a technical support agreement of 5 years with
an option to extend which will provide Vodafone Qatar with
access to all services and support it currently enjoys and with
Vodafone Qatar continuing as a Vodafone branded company.
In parallel,
Vodafone Qatar announced today that Qatar Foundation for
Education, Science and Community Development (“Qatar
Foundation”) entered into a conditional Share Purchase Agreement
(“SPA”) with Vodafone Europe B.V. (“Vodafone Europe”), whereby
Qatar Foundation agreed to purchase from Vodafone Europe shares
representing 51% of the share capital of Vodafone and Qatar
Foundation LLC (“Private Founder”) (the “Transaction”). The
Private Founder is an existing shareholder in Vodafone Qatar,
owning 45% of the share capital of Vodafone Qatar. Upon
completion of the Transaction, which is subject to and
conditional upon various regulatory approvals being obtained and
the satisfaction of a number of conditions precedent, the
Private Founder will be 100% owned by Qatar Foundation whose
direct and indirect shareholding in Vodafone Qatar will then
increase from its current level of 27.05% to 50% of the share
capital of Vodafone Qatar.
Board and Executive Management Restructure
To drive the
Company forward and with the above in mind, Rashid Al-Naimi has
been elected the Managing Director with immediate effect. As the
CEO of Qatar Foundation Endowment, Rashid Fahad Al-Naimi is
responsible for Qatar Foundation’s investment portfolios He is
also the residing Chairman of MEEZA and Mazaya Qatar, and a
Board Member of Vodafone Qatar.
Ian Gray,
Vodafone Qatar’s current CEO and Board Director has decided to
retire and steps down following the Company’s Annual General
Assembly (AGA) on March 19. H.E. Sheikh Hamad bin Abdullah
Al-Thani will then take up the role of CEO. H.E Sheikh Hamad bin
Abdullah Al-Thani currently holds the role of Vodafone Qatar’s
Chief Operating Officer. Since joining Vodafone Qatar in 2013,
he has served in several roles including: Senior Business
Development Manager, Head of Public Sector Sales and Sales
Director. Under his leadership, Vodafone Qatar’s enterprise
market share grew substantially as did the Company’s position as
an ICT and mega projects service provider. Before joining
Vodafone Qatar, he held multiple ICT related roles in the oil
and gas sector. He holds a BA in Computer Science from the
University of Ottawa in Canada.
Moreover, the
company intends to recommend to the shareholders at the EGA to
reduce the size of the Board from 9 members to 7 members, which
will take effect at the end of the term of the existing Board
Members, subject to obtaining the approval of the shareholders
of the Company at an EGA.
Commenting on
these positive Company changes, H.E Mr. Abdullah bin Nasser
Al-Misnad, Chairman, Vodafone Qatar said, “I strongly believe
that these changes will provide the immediate requirements
needed to accelerate Vodafone Qatar’s future development as an
industry leader in Qatar. These changes will also have a
positive impact on the operational and financial health of the
Company and as a result, deliver strong long term shareholder
value.
On behalf of
the Board, I’d also like to express my sincere appreciation for
Ian Gray’s part in driving a strong recovery of the Company and
laying a solid foundation which our new leadership will continue
to build on going forward.”
Current CEO,
Ian Gray said, “I’d like to thank the Board, our shareholders,
employees and customers for the opportunity to lead this great
Company over the past two years. I am proud of the
accomplishments we have had and am confident that the
foundations we have to deliver our future growth are in place. I
congratulate Sheikh Hamad on his new role as CEO in which his
experience and commitment will have a profound impact on
delivering the Company’s vision.”
Vodafone
Qatar’s future CEO H.E Sheikh Hamad bin Abdullah Al-Thani said,
“I want to thank the Board and Ian for their trust in me. I am
excited about the future of Vodafone Qatar. We are at the
beginning of a journey that will bring us closer to providing a
converged digital ecosystem with smart solutions. I am certain
that Vodafone Qatar will play a crucial role in driving the
digital transformation in support of Qatar National Vision 2030.
Customers have a great deal to look forward to in terms of
innovation and choice.”
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