Qatar Telecom (Qtel) is expected to acquire 51 percent stake of Kuwait's National Mobile Telecommunications Co., popularly known as Wataniya, in a deal worth over 3 billion U.S. dollars, the Kuwait Times reported on Saturday.

The initial deal, signed on Friday, could be officially signed and announced five days later in line with a local stock regulation, the daily said.

Under the deal, Kuwait Projects Co. (KIPCO), a private holding company, would sell its entire 51 percent stake of 233.688 million shares to Qtel for 1.075 billion Kuwait dinars (about 3.655 billion dollars), KIPCO Chief Executive Officer Faisal al-Ayyar was quoted as saying.

Al-Ayyar said that Qtel has agreed to pay per share for 4.6 dinars (about 15.9 dollars), up from last week's closing price of 3.1 dinars (about 10.7 dollars).

When completed, the deal will become the largest ever acquisition by a foreign company in Kuwait, said the report.

Wataniya, which began operations in 1999, is one of two mobile phone operators in Kuwait. The other is Mobile Telecommunications Co. (MTC), established in 1983.

"This deal is undoubtedly the most significant in the Gulf and a step toward a freer market in Kuwait," Sheikh Abdullah bin Mohammed bin Saud Al-Thani, chairman of Qtel, was quoted as saying.

Qtel is 55-percent-owned by the government of gas-rich Qatar.

Source: Xinhua