Bahraini operator Batelco has agreed to buy 20 percent in Yemen's mobile operator SabaFon for USD 144 million. Batelco is buying the stake from Shaikh Hameed Al Ahmar, SabaFon's largest shareholder and chairman. The Al Ahmar Group will remain SabaFon's largest single shareholder. SabaFon is the largest GSM mobile operator in Yemen offering national coverage with over 500 base stations and 1.2 million subscribers at the end of February. SabaFon started commercial operations in February 2001 and has grown to a market share of 40 percent. The company is profitable and generates positive cash flow. Mobile penetration in Yemen was at around 12 percent in January.
