DUBAI, Oct 2 (Reuters) - Vodafone Qatar said ithas reached a non-binding agreement to buy state-owned QatarNational Broadband Network (QNBN) and expects to complete thedeal by the end of 2014.
Vodafone Qatar, the country's No.2 mobile operator bysubscribers, will buy 100 percent of QNBN, comprising 21 millionshares at a par value of 10 Qatar riyals ($2.75) per share,according to a company statement.
That would equate to a deal worth 210 million riyals,although Vodafone Qatar did not say whether it would actuallypay par value for the shares.
QNBN began rolling out a fibre network across all of Qatarin 2012 and expects to complete construction within three years,according to its website.
The company has agreements to provide wholesale broadbandcapacity to both Vodafone Qatar and former telecom monopolyOoredoo.
"Completion of the transaction is conditional uponregulatory approvals and consents, completion of due diligence,agreement on the consideration payable, the arrangement andprovision of funding to finance the acquisition and entry intoof a definitive share purchase agreement," Vodafone Qatar said.
Vodafone Qatar's main shareholders are state-run QatarFoundation, which owns 22 percent, and London-listed Vodafone, which holds 23 percent. The remainder of the shares arefreely traded. Government entities own the majority of Ooredoo.
Vodafone Qatar had a 33.8 percent share of Qatar's mobilesubscribers as of March 31, according to its financialstatement.(1 US dollar = 3.6414 Qatar riyals) (Reporting by Matt Smith and Archana Narayanan; editing byKeiron Henderson)