UAE telecoms group e& (Emirates Telecommunications Group) has announced the termination of talks to increase its stake in Saudi Arabia’s Etihad Etisalat (Mobily) to 50%.
Despite being Mobily’s largest shareholder with a 27.99% stake, a conclusive way forward for the potential transaction could not be determined, leading to the decision to abandon the financial transaction.
Details of the Announcement:
- Termination of Discussions: e& officially terminated discussions regarding the proposed increase in its shareholding in Mobily, as revealed in a filing on the Abu Dhabi exchange.
- Largest Shareholder: Formerly known as Etisalat, e& is Mobily’s largest shareholder with a 27.99% stake.
- Failed Negotiations: After a period of engagement and negotiations, no conclusive agreement could be reached to move forward with the proposed transaction, prompting the decision not to pursue the financial deal.
- Continued Support: While the stake increase discussions have ceased, e& expressed its commitment to supporting Mobily as its major shareholder. The company remains optimistic about Mobily’s prospects in the rapidly growing Saudi market.
Background:
In March of the previous year, e& had offered to raise its stake in Mobily and suggested a share price of 47 riyals ($12.53) per share.
The termination of talks signals the end of these negotiations without reaching a definitive agreement.
