Etisalat and AlKhair terminate discussions on Etisalat’s offer on Zain

Etisalat wishes 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 announced 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.

As a result, Etisalat regrets to announce that discussions with AlKhair on the acquisition of a controlling stake in Zain have ended.

“We would like to thank Mr.Nasser Al Kharafi for the cooperation shown towards Etisalat and leadership demonstrated throughout the process” Etisalat Chairman Omran said.

Omran has commended the efforts carried out by the National Bank of Kuwait and Morgan Stanley in this mission emphasizing on the deep brotherhood relationship that links the UAE and Kuwait.

He concluded that “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.”

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