x Abu Dhabi, UAESaturday 22 July 2017

Etisalat chairman hails US$10.5 billion Zain deal

Mohammed Omran speaks publicly for the first time about his company's bid to buy a 46 per cent stake in Kuwaiti telecommunications operator Zain.

HE Mohammad Hassan Omran, chairman of Etisalat is optimistic about their bid for Zain.
HE Mohammad Hassan Omran, chairman of Etisalat is optimistic about their bid for Zain.

Etisalat believes its US$10.5 billion (Dh38.5bn) offer to buy a controlling stake in Kuwaiti telecommunications operator Zain could be successful in a "number of weeks", the chairman of the company said in his first official statement on the deal.

 

Mohammed Omran, the chairman of Etisalat, said in a company statement that the firm is still working on the details of its acquisition of Zain and the deal will not impact its dividend payout to shareholders.

 

Last month, Etisalat offered to buy a 46 per cent stake in Zain for 1.7 Kuwaiti dinars per share in a move that would make the UAE telecommunications operator one of the largest in the world.

 

"We believe that this deal represents great value to our shareholders, however, we intend to confirm this value through detailed due diligence. We will not proceed unless such valuation is confirmed," Mr Omran said.

 

"Most of the reaction in Kuwait has been very positive, however, as in any high profile transaction, there is some opposition from some shareholders."

 

dgeorgecosh@thenational.ae