Etisalat Intensifies Moves to Acquire Shares in Zain
Lagos — Mobile telecommunications giants, Etisalat, has updated its proposal to acquire certain shares in Mobile Telecommunications Company LLC ("Zain") to provide that the offer is binding subject to a number of conditions.
In a statement made available to LEADERSHIP yesterday, it said in consonance with the company's prior proposal, the updated proposal of KWD 1.7 per share is subject to a number of conditions, which include: the successful disposal by Zain of its entire interest in Zain KSA in a timely fashion; the negotiation of the definitive transaction documents; the completion of satisfactory due diligence; the receipt of all applicable regulatory approvals; and there being no material adverse change in Zain's business, financial, or regulatory affairs, as well as other customary conditions.
The number of shares to be acquired will represent 51% of Zain's total issued share capital and voting rights (excluding shares held in treasury but including all shares which may be issued pursuant to the exercise of any options).
In addition, it said the proposal would terminate unless the parties have entered into definitive transaction documents by 15 January 2011.
The statement noted, "it is expected that our due diligence and other work required to reach definitive agreements, if successful, would take a number of weeks and, if signed, the transaction is unlikely to close before the end of first quarter of 2011".11,9% by mid-afternoon.