Some of Kuwaiti-based cellco Zain’s shareholders are campaigning against a proposed deal with UAE incumbent Etisalat.
The comments were made by Mohammed Omran, chairman of Etisalat, in a statement to Dow Jones, who claimed that although most of the…
Some of Kuwaiti-based cellco Zain’s shareholders are campaigning against a proposed deal with UAE incumbent Etisalat.
The comments were made by Mohammed Omran, chairman of Etisalat, in a statement to Dow Jones, who claimed that although most of the shareholders were favourable to Etisalat’s offer, some minority shareholders were holding out.
Omran was responding to a statement by Ali al-Mussa, chairman of Kuwait’s Securities House, who says he represents the interests of institutional and family office shareholders who own around 20% of Zain. About two weeks ago, the Securities House published an advertisement in the local press, demanding fair treatment for shareholders in the deal.
Zain’s largest private shareholder, the Kharafi Group – family office of Kuwait’s richest family, the Al Kharafi clan – has already given Etisalat’s offer its blessing. The Kharafi Group controls up to 20% of Zain’s shares.
Etisalat is trying to buy 46% of its rival Zain. The transaction could be for more than US$10bn (E7.2bn) and would make Etisalat the largest telco in the Middle East.
The government and its institutions own approximately 27% of Zain and 10% is treasury stocks that are neutral.
Etisalat did not respond to requests for further comments, whilst Zain’s official spokesperson said: “The management does make any comment on issues that concern shareholders.”
