Now that it has sold off most of its assets in Africa, Kuwait’s Zain seems to look like an appealing target for acquisitions. That said, UAE operator Etisalat is in the process of acquiring a 46% stake in the rival Middle Eastern firm, having offered to pay 1.7 KWD ($5.97) per share, which would value the shareholding at around $10 billion.
“We would like to emphasise no final agreement has been reached as this offer depends on the fulfillment of specific requirements and conditions that must be met,” Etisalat said in a statement.
Etisalat is being advised by National Bank of Kuwait and Morgan Stanley, while Kharafi Group (Zain’s major shareholder) has hired French bank BNP Paribas.
Etisalat operates in 18 countries across Asia, the Middle East and Africa, serving over 100 million customers out of a total population of approximately 1.9 billion people. It is said that the company is also trying to expand its Indian operations, possibly by acquiring IDEA Cellular.
[Via: MobileBusinessBriefing]