Establishment of 'Kuwait Digital Network' to Develop and Operate Fixed Telecommunications Network... with Capital of 33.19 Million KD
Press coverage 2 newspapers covered this event: Al-Jarida · Al-Rai →
Incorporation of a new company to develop Kuwait's fixed telecommunications network through public-private partnership
Translated by Qiyas from الراي — Original source
- 19.9 million KD share of the Public Authority for Partnership Projects on behalf of citizens and public entities
- 8.29 million KD value of 25% of the paid-up capital of the new company
- 3 months to convene the inaugural general assembly
The founding contract of “Kuwait Digital Network” Company, established as a Kuwaiti public joint-stock company, with an authorized and issued capital of 33.19 million KD, was notarized through a partnership between the Public Authority for Partnership Projects and “Ooredoo Kuwait Holding Company,” with the aim of developing, designing, financing, building, operating, and maintaining fixed telecommunications networks in Kuwait.
According to the official gazette “Kuwait Al-Yawm,” the company’s founding contract was notarized on October 29 last year, in accordance with the Companies Law and its amendments, as well as the Public-Private Partnership Law.
The company set its authorized and issued capital at 33.19 million KD, distributed across 331.9 million shares, with a nominal value of 100 fils per share, all of which are cash shares.
Company ownership is distributed as follows: 50% to the Public Authority for Partnership Projects on behalf of citizens, equivalent to 16.59 million KD; 40% to “Ooredoo Kuwait Holding Company,” valued at 13.27 million KD; and the Authority’s share on behalf of public entities amounts to 10%, valued at 3.31 million KD.
Thus, the total share of the Public Authority for Partnership Projects reaches 60% of the company’s capital, valued at 19.91 million KD, compared to 40% for the strategic partner “Ooredoo Kuwait Holding.”
Founding documents show that the founders deposited 8.29 million KD, representing 25% of the nominal value of each of their shares, with each party committed to paying the remaining value of their share in cash, amounting to 24.89 million KD.
The remaining amounts are due no later than the date of signing all related financing contracts and issuing letters of guarantee and letters of credit.
The Authority will subscribe on behalf of citizens at 50% and public entities at 10%, with the value of this subscription to be paid to the State upon full operational launch of the project, in accordance with the provisions of the Public-Private Partnership Law.
Developing Fixed Telecommunications
The main objectives of the company include developing, designing, financing, building, operating, and maintaining fixed telecommunications networks in Kuwait, as well as engaging in activities related to installing telecommunications equipment, laying pipes, cables, and computer networks, providing wired telecommunications services, establishing telecommunications booths and offering modern services, as well as renting radio, television, and telecommunications equipment.
The founding contract designates the State of Kuwait as the company’s headquarters, without specifying an expiration date.
The contract stipulates that the founders must convene the inaugural general assembly within three months from the date the Authority completes its subscription, with the meeting being valid only if shareholders representing more than half of the subscribed shares are present.
