Turkish conglomerate Cukurova has emerged as a suitor for a key minority portion of Kuwaiti telco Zain, adding a new threat to Etisalat’s US$12bn agreement to buy a 46% stake.
Disgruntled Zain shareholder Al-Fawares Holding, which owns a 4.5% stake, has…
Turkish conglomerate Cukurova has emerged as a suitor for a key minority portion of Kuwaiti telco Zain, adding a new threat to Etisalat’s US$12bn agreement to buy a 46% stake.
Disgruntled Zain shareholder Al-Fawares Holding, which owns a 4.5% stake, has found an unexpected ally in the Turkish group, which had initially been seeking a 29.9% stake for US$6.1bn, reports the Financial Times.
Al-Fawares has vehemently opposed Etisalat’s agreement with a consortium led by the powerful Al Kharafi group, which owns a combined 25% of Zain.
Al-Fawares’ Sheikh Khalifa Ali Al-Sabah, who sits on Zain’s board, confirmed the talks but emphasised that there was no binding agreement in place. He added that his group was also in talks with other potential suitors.
TelecomFinance sources appear not to be taking Cukurova’s interest in Al-Fawares very seriously, with one going so far as to suggest that the move is simply an effort to convey a sense of might and a strong financial position.
Cukurova head Mehmet Emin Karamehmet is currently trying to raise US$8bn to back a takeover of the Turkish power grid.
Most people in the market expect Etisalat to extend its own January 15 deadline to close a deal with Zain by two weeks. Predictions as to the likelihood of the deal going through range from a low of 30% to a high of 50%, thanks to the dual complexities of calming angry small shareholders and selling the financially challenged Zain Saudi Arabia, a key condition of the deal.
