Zain opens books to Etisalat for due diligence

8 Nov 2010

Kuwaiti telecoms group Zain confirmed today in a statement to the Kuwait stock exchange that its board of directors has approved opening the company’s books for due diligence by UAE’s Etisalat, which has offered to buy 46% of the firm. A source close to the deal disclosed the information in advance to Reuters yesterday (7 November 2010), following a statement to the bourse from Zain that its board was considering a request submitted by Zain shareholder Kharafi Group’s Al Khair National unit to open the books to Etisalat. On Wednesday Etisalat said completion of the USD6.07 per share buyout offer – worth just under USD12 billion – would be dependent on the sale of Zain’s Saudi Arabian subsidiary. Kharafi Group’s subsidiary National Investments Co (NIC) is inviting shareholders to join the stake sale via an offer to run from 10 November to 30 November.

Kuwait, Etisalat UAE, Zain Group