Added by David Sandercock on January 20, 2011
Elisalat, the UAE telecommunications firm, stated that it was still working with regard to the Zain deal since the due diligence deadline which was set for January 15 was missed and since a possible rival bid has been rumored.
Etisalat wants to buy a stake in Zain for $12bn and said this Sunday that the deal isn’t finalized yet and that more proceedings are to be made since “unforeseen delays” prevented the firm to meet the diligence deadline.
Etisalat’s statement said that both it and Zain were still working in order to announce soon a definitive transaction.
The telecom firm has made an offer to buy a 46 stake in Zain. The offer made to the Kuaiti family, the major shareholders in the company, last September amounted 1.7 dinars per Zain share.
Etisalat has experienced somewhat of a downfall after losing its home monopoly three years ago when the the rival firm Du DU.DU came in the market. The intention of the telecom firm to purchase the large amount of shares in Zain came since it plans to expand into Middle Eastern emerging markets like Iraq.
Until now, the telecom firms, which is owned by the government through a 60 per cent stake, has not announced a new diligence deadline.