UAE incumbent Etisalat has stated that its ability to grow and remain profitable hinges on its capacity to keep expanding internationally, both organically and through acquisitions.
The company is in negotiations to buy a 51% stake in its regional…
UAE incumbent Etisalat has stated that its ability to grow and remain profitable hinges on its capacity to keep expanding internationally, both organically and through acquisitions.
The company is in negotiations to buy a 51% stake in its regional competitor, Zain of Kuwait, for an estimated US$12bn.
The company has notified both the Abu Dhabi Stock Exchange and the London Stock Exchange that it will be seeking to raise up to US$8bn in bonds – split between a US$7bn conventional issue and a US$1bn Sukuk.
In its prospectus to the LSE, the telco warns that it will need substantial capital investment in the future if it is to prosper, and that there is no certainty as to from where this capital will come.
The Emirati telco also admitted that any possible downgrading of its credit rating might make borrowing more expensive and difficult to obtain. According to the prospectus, the firm had AED5.63bn (E1.14bn) of debt on its books with AED40.9bn (E8.25bn) of equity issued and a market capitalisation of AED46.5bn (E9.38bn) as at 30 September 2010.
Etisalat was unavailable for comment by the time of going to press.
