Etisalat receives green light to conduct Zain due diligence

Following the announcement by Etisalat that it has made a formal, conditional offer to acquire 51 per cent of the Zain shares traded on the Kuwait Stock Exchange, Zain Group confirmed that the board of directors of Mobile Telecommunications Company KSC-‘Zain’ met on November 7, 2010 to discuss the request of Al-Khair National for Stocks and Real Estate Co., which has a large Zain shareholding, to approve and allow Etisalat to commence a process of due diligence with a view to acquiring the latter’s and other associated parties’ equity in the company.

Following the meeting, the Zain board announced that it had formally accepted Al Khair’s request to permit Etisalat to commence this process. 

Furthermore, Zain’s executive management will fully cooperate with Etisalat in completing all the necessary procedures of the due diligence, while at the same time ensuring the preservation of the company and shareholder interests.

It is important to note that one of the conditions to completing the transaction is the sale of Zain Group’s stake in its mobile operation in Saudi Arabia.

Zain will advise all stakeholders of any further developments on this matter as and when they occur.