The Kuwait National Investment Company (NIC) has said that its “commitment” to sell a 46% stake in telco Zain to UAE based telecoms giant Etisalat had ended.
The statement to the Kuwaiti stock exchange by NIC, an affiliate of Zain’s influential…
The Kuwait National Investment Company (NIC) has said that its “commitment” to sell a 46% stake in telco Zain to UAE based telecoms giant Etisalat had ended.
The statement to the Kuwaiti stock exchange by NIC, an affiliate of Zain’s influential shareholder the Al Kharafi Group, came after Etisalat’s most recent deadline for due diligence expired yesterday with no conclusion.
The Al Kharafis have been the driving force behind the proposed transaction, while smaller shareholders and leading board members have opposed it.
Some in the market are sceptical about the announcement, suggesting that it may amount to no more than posturing by the Al Kharafis.
A spokesperson for Zain declined comment, saying that the statement was a shareholder matter rather than a management one.
Etisalat has offered to pay US$11.7bn for the 46% stake, and remains in discussion with 18 banks over a US$12bn loan. It also has a US$8bn bond programme, which includes a US$1bn sukuk, in place.
The Al Kharafis are advised by BNP Paribas, Etisalat by Morgan Stanley and NBK, and Zain by Credit Agricole and/or UBS.