UAE-based Etisalat is in talks to acquire a majority stake in Kuwait’s Zain, according to Al Seyassah newspaper.
Etisalat is perennially on the lookout for acquisitions that would take it into new markets and a tie-up with Zain would represent a first…
UAE-based Etisalat is in talks to acquire a majority stake in Kuwait’s Zain, according to Al Seyassah newspaper.
Etisalat is perennially on the lookout for acquisitions that would take it into new markets and a tie-up with Zain would represent a first major consolidation play among the Middle East’s most influential operators.
The report said that Etisalat and Zain held meetings to discuss a potential deal last week.
Etisalat has recently been linked to a possible bid for a 26% stake in India’s Reliance Communications but has not firmed up any interest in that deal.
Zain, which sold off the vast majority of its African portfolio to Bharti Airtel earlier this year, could be open to a majority stake sale, according to TelecomFinance sources. Any disposal is likely to be driven by the Kharafi family, which may decide that having seen the company turn its back on its African investment the time is now right to cash in on its stake.
MTN could also be interested in acquiring a stake in Zain were it to come into play, according to a TelecomFinance source. Turkcell, which has also been linked to interest in the group, recently told TelecomFinance that the Kuwaiti firm did not meet its investment criteria.