Home / Etisalat may only buy 40% of Zain

Etisalat may only buy 40% of Zain

Etisalat reportedly reduces bid to acquire Zain, would no longer gain controlling interest

Etisalat may only buy 40% of Zain
Etisalat has been trying to take over Zain.

Etisalat has lowered its targeted share of Zain to 40% after shareholder opposition threatened to delay the sale, according to Reuters.

The UAE operator was in talks to buy a 46% stake in Zain, from a consortium including the Kharafi Group conglomerate, but Reuters said that two unamed sources close to the deal said that stake had now been cut to 40%.

Objections from shareholders outside the consortium had threatened to block the transaction from going through.

Al Fawares Holding, which owns a 4.5% stake in Zain, took legal action to halt the due diligence in the planned sale, although a ruling was not due until 22nd December.

The revised bid will now mean that instead of gaining a controlling interest in Zain, which the 46% of shares together with treasury shares owned by Zain, Etisalat now stands to become a major shareholder instead.

Etisalat is looking to access lucrative Middle East and African markets through Zain’s extensive operations in the region.

Follow us to get the most comprehensive technology news in UAE delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.