Etisalat moves a step closer to foreign ownership of shares

Federal laws in the UAE have been amended allowing for the possibility of foreign investors to own shares in Etisalat Group.

The changes permit legal/judicial persons wholly-owned by UAE nationals to hold shares in the company. Also, non-national individuals and entities may own up to 20 per cent of Etisalat Group’s shares, subject to the approval of the company’s board of directors. However, restrictions in respect of voting rights shall be applied to the shares owned by non-nationals and such shares shall not hold any voting rights at Etisalat’s general assembly.

In addition to ordinary shares, a ‘special share’ will be issued to the federal government of the UAE, and Etisalat Group will also be entitled to issue different classes of shares. However, other than the issuance of the special share, Etisalat does not intend to issue any additional shares at this time.

Some of the other material changes, include the ability for Etisalat to establish a new operating company for the purpose of operating its telecommunications network business and providing telecommunication services in the UAE, subject to special shareholder approval; and establishing a share buyback programme at any time in accordance with terms and conditions.