etisalat and AlKhair terminate discussions on etisalat's offer on Zain

Abu Dhabi, March 20, 2011 (WAM) - eisalat yesterday announced that discussions with AlKhair on the acquisition of a controlling stake in Zain have ended without reaching an agreement.
In a statement released to update its investors and other stakeholders on the status of its proposal to acquire a controlling stake in Mobile Telecommunications Company LLC (Zain) through AlKhair National for Stock and Real Estate Company (AlKhair), Etisalat said that it had made a conditional binding offer at KWD 1.7 per Zain share on November 3, 2010, updated investors on its proposal on January 16, 2011 and further updated investors on March 2, 2011.
"In light of the results of the extensive due diligence performed by Etisalat and its financial, legal and technical advisors, the current political unrest in the region, Non unanimous agreement among Zain Board of Directors(shareholders) and the impact of the upcoming mandatory offer rules in Kuwait, the terms of its conditional binding offer as announced on November 3, 2010 are no longer viable", said the statement.
etisalat Chairman Omran thanked Nasser Al Kharafi for the cooperation shown towards etisalat and leadership demonstrated throughout the process. Omran also commended the efforts carried out by the National Bank of Kuwait and Morgan Stanley in this mission emphasising on the deep brotherhood relationship that links the UAE and Kuwait.
"etisalat would like to thank Zain for the cooperation provided during this process that represented a true partnerships and cooperation among GCC/ Arab economy that built on a solid stand. He extends his thanks also to reach the advisors and the entire working team of both sides for their extensive efforts during the last months. etisalat wishes Zain`s management and employees all the progress and to continue building on the company's successes.", said the statement. - Emirates News Agency, WAM