Etisalat still interested in Zain’s deal (UAE)
UAE’s Etisalat spokesperson Ahmad Bin Ali has stated that the company is still interested in buying a 46% stake in Zain Kuwait even after the expiration of its $12 billion bid.
Ali announced that Etisalat’s ongoing interest after Kuwati family conglomerate Kharafi Group, Zain’s major shareholder stated that it doesn’t want to sell its stake to Etisalat anymore after the company didn’t meet the deadline for due diligence.
According to Ali, Etisalat is not sure whether Kharafi’s stake is still available for the sale.
Etisalat, Zain deal delayed (UAE)
The Emirates Telecommunications Corporation (Etisalat) has stated that its bid for a 46% stake in Kuwaiti telco Zain worth $12 billion is further delayed as the due diligence process is expected to be completed by the end of next month.
Earlier, the company missed January 15 deadline for the process and now the company is planning to present the results of its due diligence to its board in a month time.
As per the company, the final progress and the results on the proposed transaction are to be presented after the due diligence completion review to etisalat board of directors by the end of February 2011.
According to etisalat’s chairman Mohammed Omran, Etisalat is delighted with the recent progress in the due diligence process and wishes to reach a final agreement as soon as practically possible.
The company further stated that its discussions with eighteen international and regional banks regarding the financing required to complete the proposed transaction continue, and it remains highly confident that it will be able to secure the necessary financing.
The deal has been determined by hurdles including a lawsuit attempting to block the stake sale as well as an unexpected bid by Turkey’s Cukurova Holding.
The UAE telecom operator originally hoped to have a deal in place by the middle of January, but the proposed acquisition has faced opposition from some smaller Zain shareholders.
Etisalat stated that it had not made sufficient progress toward finalizing the deal by the deadline due to unforeseen delays in Zain providing access to relevant information.
Etisalat made an offer to buy a 46% stake of Zain last September to Kuwaiti family conglomerate Kharafi Group.
Etisalat signs due diligence deal with Kharafi Group (UAE)
Etisalat and major shareholder Kharafi Group have signed an agreement to start the due diligence process for a deal to sell 46% stakes of Zain to the UAE telecoms operator.
According to National Investments Co, a Kharafi Group unit, the company was informed by their client that Al Khair National and Emirates Telecommunications Co have signed an agreement, and the due diligence will start.
Earlier this year, Etisalat, the Gulf’s second-largest telecom operator by market value, bid US$6.06 a share for a 46% stake in Zain in a deal worth just under US$12 billion.
The bid won the backing of Kharafi Group, which began assembling a consortium of shareholders to tender to the offer.
But according to earlier statements by Etisalat, it will only determine if its initial offer price for Zain was valid after completing the due diligence process.
As per Kharafi Group, it had accumulated enough shares to tender to the offer through its brokerage unit, NIC.
As per reports citing al-Qabas, it has learned that the due diligence is expected to take about six weeks or less.
Etisalat didn’t offer to buy KIA’s Zain stake
The country’s sovereign wealth fund, Kuwait Investment Authority (KIA), did not receive an offer for its 24.6% stake in Zain Group as part of UAE-based Etisalat’s non-binding bid for a 46% share of the Kuwaiti telecoms provider.
According to Reports, citing Al Arabiya television, KIA’s managing director Bader al-Saad said on Saturday that the fund’s stake, the largest single holding in Zain Group does not form part of Etisalat’s proposed share buyout, although he added that KIA supports the potential deal as it will boost the country’s stock exchange.
According to the Kharafi Group, Zain’s largest private shareholder, it has collected pledges from enough shareholders to tender to Etisalat’s offer, which, given that some 10% of Zain shares are held as treasury stock, could effectively give the Emirates group control of the company.
