UAE-based telecoms group Etisalat has revealed that its management agreement with Saudi Arabian affiliate Etihad Etisalat (Mobily) had expired and the companies have decided not to renew the arrangement. Etisalat said in a brief statement that the two sides ‘will continue to work closely and foster the relation between each other to enhance the shareholders’ value of both companies.’ The operator also added that ‘Etisalat Group and Mobily are currently working on developing a service and technical support agreement, which will take into consideration Mobily’s requirements for the coming period given the scale of its operations and customer base.’
TeleGeography notes that at the time of its launch in 2005, Mobily’s largest single shareholder was Etisalat with a 35% stake. In April 2008 a further 20% tranche was floated on the stock market (as had been agreed under the terms of its original licence), and the sale saw Etisalat’s stake diluted to 26.25%. Etisalat, however, has since modestly increased its holding in the company by buying out Mobily’s outstanding shares, and currently holds 27.5% of the Saudi operator.