NIC, a unit of Kuwait’s Kharafi Group, a major shareholder in Kuwaiti telco Zain, has reportedly told the Kuwaiti stock market that it has not been notified about any extension of the January 15 deadline to sell a 46% stake in the company.
Reuters…
NIC, a unit of Kuwait’s Kharafi Group, a major shareholder in Kuwaiti telco Zain, has reportedly told the Kuwaiti stock market that it has not been notified about any extension of the January 15 deadline to sell a 46% stake in the company.
Reuters reported today that National Investments Co (NIC) had not received any information from its client Al Khair National about an extension of the deal between Al Khahir and Etisalat.
Al Khahir is also part of the Kharafi Group.
TelecomFinance is aware of rumours in the Middle East that Etisalat is set to extend its deadline by two weeks, but spokespeople from the Kharafi Group, NIC, Zain and Etisalat were unavailable for comment by press time. The deadline had widely been seen as flexible, since it was Etisalat who had set it.
Deal completion is contingent upon Etisalat and Zain being able to find a buyer for Zain Saudi Arabia, to comply with Saudi FDI caps. Etisalat too owns an asset in Saudi Arabia, Mobily. While some sources in the region believe the two operators might be able to strike a deal with the regulator to sell Zain Saudi Arabia at a later date following deal completion, there is also a view that officials would be loathe to make an exception to the rule.
Etisalat first registered an interest in Zain in September after discussions with the influential Kharafi Group, and subsequently offered US$12bn for the 46% stake.
The deal had moved on to the due diligence stage, with Etisalat setting a deadline of January 15 for completion.
Etisalat is thought to have secured US$12bn in financing with ten banks to back the deal.
