Etisalat did not offer to buy Kuwait Investment Authority’s Zain stake

12 Oct 2010

Kuwait Investment Authority (KIA), the country’s sovereign wealth fund, 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 Dow Jones Newswires, quoting 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. Zain’s largest private shareholder, the Kharafi Group, said last week that 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.

Kuwait, Etisalat UAE, Zain Group