Zain takes majority stake in Paltel in share swap deal

19 May 2009

Kuwait-based telecoms group Zain has acquired a 56.53% stake in Palestinian incumbent Palestine Telecommunication Company (Paltel), Reuters reports. The two companies have entered into an agreement for a share-for-share exchange, which will see Zain take the majority stake in Paltel in exchange for Paltel taking 100% ownership of Zain Jordan; the merger will set the current Paltel shareholder’s equity position in both Paltel and its newly acquired subsidiary at 41.43%. The deal had been expected for some time, with talks between the two companies first reported in January 2009. It is understood that the delays have stemmed from insistences from the Paltel board that it would be free from any legal liabilities relating to Zain.

Jordan, Palestinian Territory, Palestine Telecommunications Company (Paltel, incl. Hadara), Zain Group, Zain Jordan