UAE incumbent Etisalat is willing to acquire a smaller stake in Kuwait-based operator Zain after opposition from the target’s shareholders, reported Reuters citing sources.
Etisalat had sought to acquire a 46% stake in Zain for US$12bn in a deal arranged…
UAE incumbent Etisalat is willing to acquire a smaller stake in Kuwait-based operator Zain after opposition from the target’s shareholders, reported Reuters citing sources.
Etisalat had sought to acquire a 46% stake in Zain for US$12bn in a deal arranged with a consortium led by local investment firm Kharafi Group.
However, after receiving opposition from undisclosed shareholders outside of the consortium, Etisalat has reportedly lowered the stake it is seeking to 40%.
The shareholders had moved to block the deal because they opposed a premium that would have been paid to Kharafi.
Reports earlier in the week claimed Fawares Holding, which owns about 4.5% of Zain, had filed a lawsuit to try and prevent it from opening its books to Etisalat.
The process is currently in a due diligence phase, with Etisalat expecting definitive transaction documents to be in place by 15 January 2011.
Etisalat and Zain were unable to comment before going to press.
