Etisalat extends deadline for Zain deal
Etisalat aims to complete due diligence for the deal by February 28
Etisalat said that it aims to complete the due diligence for its proposed acquisition of a 46% stake in Zain Group by the end of February.
The UAE telco, which missed its original deadline of January 15, added that it continued to “make good progress” with the due diligence.
Etisalat also appeared upbeat about securing financing for the $12 billion deal. The company said that discussions with 18 banks regarding financing for the deal were “continuing” and that it remained “highly confident” of securing the necessary funds.
"Etisalat is delighted with the recent progress in the due diligence process and wishes to reach a final agreement as soon as practically possible," said Mohammed Omran, chairman, Etisalat.
“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.”
Etisalat announced its bid to acquire a 46% stake in Zain for almost $12 billion in November 2010.
The company had originally planned to complete due diligence for the deal by January 15, but the transaction has faced hurdles, with opposition from some of Zain’s shareholders and a rival bid from Çukurova, a Turkish business conglomerate, which was reportedly interested in buying a 29.9% stake in Zain.