Etisalat ends pursuit of Zain stake

Etisalat has said it has shelved plans to acquire 46 per cent of Zain Group.

"Due to the results of due diligence done by Etisalat’s financial advisers and legal experts, the political turmoil in the region, the absence of a consensus between Zain’s shareholders, and the effect of the law binding offers that is due to be issued in Kuwait…Etisalat conditions that were announced on November 3 are no longer applicable," Etisalat said in a statement.

Key Zain shareholder, Al Khair National Co. for Stocks and Real Estate, which is controlled by Kuwait’s Kharafi Group, was leading discussions with Etisalat on its bid for Zain.

Etisalat launched its original offer for Zain, worth about US$11.7 billion, last September. It missed its first self-imposed January 15 due diligence deadline due to what it said at the time was a "lack of information." Its second due diligence deadline expired at the end of February.