Trowers & Hamlins

Trowers & Hamlins, the international law firm, has advised Qatar Telecom (Qtel) QSC, the Qatari telecoms giant, on its participation in the Asia Cell Consortium which has just been awarded a 15 year national mobile telecoms licence in Iraq at a price of US $ 1.25 billion.

The licence was one of three licences awarded after a marathon 18 hour auction process held in the Jordanian capital Amman. The licences were awarded at a cost of US $ 1.25 billion each after 18 separate bidding rounds.

The deal is among the largest commercial transactions completed in Iraq this year and thought to be one of the largest Iraqi transactions on which a UK law firm has advised.  

The Asia Cell Consortium is made up of:

• Asia Cell Iraq, an incumbent mobile operator in the north of Iraq with over 3.5 million subscribers;
• Qtel, the Gulf based telecommunications operator which owns controlling stakes in telecommunications operators in Qatar, Oman, Palestine, Saudi Arabia, Kuwait, the Maldives, Tunisia and Algeria in addition to significant stakes in telecommunications operators in Singapore, Indonesia, Pakistan and Jordan; and
• Merchant Bridge, a London-based investment bank with significant business interests in Iraq.

Abdullah Mutawi, Head of the International Telecoms Group at Trowers & Hamlins, says that Qtel’s planned investment in Iraq’s mobile telecoms network is very positive news for the country’s economy but is also a huge scoop for his client.

Abdullah Mutawi says: “This incredible acquisition for Qtel follows hot on the heels of US$ 4.6 billion worth of acquisitions completed by Qtel in 2007 alone.   This latest deal demonstrates a show of confidence by savvy investors in the future of a country with great potential and adds yet another valuable asset to a rapidly expanding portfolio of assets.”

Mutawi adds: “Given the still very low mobile penetration rates in Iraq combined with the healthy ARPUs (average revenue per user) enjoyed by incumbent operators, Iraq offers one of the most exciting potential growth stories for mobile telephony in the Middle East region today.   Once again, Qtel has demonstrated that it has a keen eye for a great business opportunity and it has been a pleasure to have been involved in advising the company on yet another one of its landmark transactions.”

The completion of the auction means Trowers & Hamlins International Telecoms Group has now acted on over US $6.3 billion worth of telecoms deals which have successfully closed in 2007 alone.

To work on this complex transaction Trowers & Hamlins assembled a multi-disciplinary team to advise on both the regulatory and licensing process in addition to advising Qtel on the corporate structuring and shareholder arrangements.   Partner Abdullah Mutawi who heads up the firm's International Telecoms Group was supported by five associates in  London and Bahrain.   At Trowers & Hamlins Charles Wilson, a senior associate in the London Corporate Group, played a particularly significant role on the corporate side of the transaction.

Trowers & Hamlins have previously advised Qtel Group on their US$ 3.8 billion acquisition of a controlling Interest in Wataniya and a US$ 635 million acquisition of a 25% stake in Asia Mobile Holdings.