UAE incumbent Etisalat has extended the deadline for its proposed US$12bn bid for 46% of Kuwaiti operator Zain for an unspecified time, highlighting due diligence difficulties.
In a statement published on Etisalat’s website on January 16, a day after its…
UAE incumbent Etisalat has extended the deadline for its proposed US$12bn bid for 46% of Kuwaiti operator Zain for an unspecified time, highlighting due diligence difficulties.
In a statement published on Etisalat’s website on January 16, a day after its original offer deadline expired, the operator blamed “unforeseeable delays in Zain providing access to all relevant information which is required for Etisalat to complete its due diligence process”.
It remains unclear until when the offer deadline had been extended, but the statement added that the group intended to inform “its stakeholders with the progress of the proposed transaction in due course”.
The deadline extension will come as little surprise to most people in the market, who doubted the deadline would be met, owing to the challenges of winning the hearts of angry minority shareholders, and divesting Zain’s struggling Saudi Arabian business, a key condition of the proposed deal.
In a new twist, Turkish conglomerate Cukurova has also emerged as a potential bidder for Zain, admitting interest in a 29.9% stake in the company last week. Most TelecomFinance sources downplayed Cukurova’s interest – and its negotiations with disgruntled Zain shareholder Al-Fawares Holding, which owns a 4.5% stake in Zain.
One source went so far as to suggest the interest from Cukurova, which reportedly had initially been seeking a 29.9% stake for US$6.1bn, is merely an effort to convey a sense of might and a strong financial position. Another, pointing to the recent official meeting between the Turkish and Kuwaiti prime ministers, believed the talks could indeed be serious.
