Etisalat submits offer for Zain stake

Etisalat submits preliminary conditional offer for Zain stake

Tags: Etisalat International - UAEKuwaitMergers and acquisitionsUnited Arab EmiratesZain Group (www.zain.com)
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Etisalat submits offer for Zain stake The UAE incumbent is reported to have made a bid for a 46% stake in Zain Group.
By  Roger Field Published  September 30, 2010

The UAE’s incumbent telecom operator, Etisalat, has submitted an offer to buy a stake in Kuwait’s Zain Group.

Ahmed bin Ali, group senior vice president, corporate communications, said in statement that Etisalat had submitted a preliminary conditional offer to buy a stake in Zain, and that concluding the offer would depend on the “fulfillment of certain requirements and conditions necessary to finalise the deal”.

A source close to Zain told itp.net that Etisalat had approached other shareholders about buying a stake, and had not approached Zain directly.

CNBC Arabiya TV reported that Etisalat had made a bid for a 46% stake in Zain for about $12 billion.

Rumours of a potential deal between the two telcos first appeared in June, when Arabic daily al-Seyassah reported that meetings had taken place between the two firms.

Speaking to CommsMEA earlier this month, Etisalat’s chairman, Mohammed Omran, said that his company would be focusing on expansion in Arab countries, either though M&A or licence acquisitions.

However, any deal between the two companies is likely to face regulatory hurdles, not least because of overlap between the two companies footprint in the region.

Zain and Etisalat compete in a number of markets, including Saudi Arabia and Sudan.

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