UAE incumbent Etisalat has announced that its US$12bn bid for 46% of Kuwaiti operator Zain is still on the table despite rumours that its offer had been lowered to 40%.
Etisalat is in talks with a consortium led by local investment firm Kharafi Group,…
UAE incumbent Etisalat has announced that its US$12bn bid for 46% of Kuwaiti operator Zain is still on the table despite rumours that its offer had been lowered to 40%.
Etisalat is in talks with a consortium led by local investment firm Kharafi Group, and reports suggested it was being forced to lower the size of its target stake because of pressure from outside shareholders.
These undisclosed shareholders have reportedly threatened to block the transaction because of the premium that would be paid to Kharafi.
However, in a statement posted on Etisalat’s website on 19 December, the company stated: ‘The 46% conditional deal is still on – as agreed upon in the initial proposal’.
An Etisalat spokesperson said the group “applies transparency and best practice when it comes to disclosure of news to the financial markets, investors and analysts. Etisalat will inform its stakeholders with the results directly whenever there is something to be disclosed”.
Zain declined to comment on the market rumours.
