Implementing Regulations of the Telecommunications and Information Technology Law

A service provider or a natural or legal person shall apply to CST to obtain Board approval in the event that he intends to buy or acquire shares or stakes in another service provider in the Kingdom equal to 5%five percent – or more – or if such transaction makes said buyer or acquirer an owner of 5% five percent or more of the service provider, or requires any legal action resulting in a dominant service provider status in a relevant telecommunications market. Then, the service provider shall submit the following with his application: 1. His information and copies of his legal documents; 2. If the buyer is a legal person, he shall provide details of the natural persons whose direct or indirect ownership in that person exceeds 5% or more, whether alone or jointly with third parties. 3. A comprehensive report on the transaction, including purpose, terms and conditions thereof, and all other details of the transaction; and 4. Financial statements of the applicant, if he is a legal person, for the last three years preceding submission of the application, accompanied by a report summarizing the financial information and annual returns from the telecommunications or information technology markets, and the value of the assets allocated therefor. The Board may request any information, data or documents that it deems necessary to take its decision in this regard. Implementing Regulations of the Telecommunications & Information Technology Law