Privatisation, Regulation, Kazakhstan, Dubai: Oger Telecom recently experienced the disappointment of losing in its bid to enter the Saudi telecoms market. For the next twelve months Oger, which is based in Dubai, will be looking to the imminently privatising Kazakhtelecom - and perhaps some other places too.

The Saudi telecoms market is for the time being closed to Oger as it lost out by a margin of US$2.1 billion in the recent competition for Saudi Arabia's third mobile license. A US$6.1 billion bid by a consortium led by Kuwait's Mobile Telecommunications Co was successful. Where does this leave Oger? Well, the company has announced the possibility of bidding for two more acquisitions this year, not to mention reviving its original intention of instigating a US$1.25 billion Initial Public Offering. This was the IPO cancelled last November when local Gulf markets were experiencing difficulties and there was the worry that share prices would in turn be adversely affected.

In the potential line-up is a bid for Kazakhtelecom, which is set for privatisation. The amount of available Oger money for such purchases has been estimated at US$4-5 billion.

Oger's CEO is Paul Doany: "We believe it would make more sense to crack at least two of these acquisitions before the IPO...The shareholders will have to decide what is the right time for the IPO. I believe that the end of this year or early next year seems like the right timing for it." he said.

Paul Doany is worried that Gulf-based bids are running too high and are over-valued. His company must look further afield. This is not surprising as Oger already runs some Turkish fixed/mobile; Central/Eastern European IT and telecoms are potential targets. In Mr. Doany's words: "We are looking at four specific acquisitions ... We are now bidding on one opportunity." The identity remains undisclosed. What is possible is a bid for most of Alba Telecom which runs fixed and mobile in Albania, and a further investment in Turk Telecom, both of which are expected to be announced soon.

more info: www.ogertelecom.com