Etisalat proposed to boost Mobily stake in over $2bln deal

The UAE’s leading phone operator Etisalat has proposed to boost its shareholding in Saudi Arabia’s Etihad Etisalat Company (Mobily).

According to Zawya by Refinitiv calculations the deal could be worth more than $2.2 billion.

Etisalat already holds 28 percent of Mobily. The Saudi operator has informed tadawul on Wednesday that Etisalat made an offer to raise its stake to 50 percent and one share.

Etisalat has suggested a price of 47 riyals ($12.53) per share, a 22.2 percent premium to Mobily’s closing share price of SAR 38.45 on 15 March.

Etisalat has informed Mobily that the potential offer and the proposed discussions are aligned with Eitsalat’s strategic objectives to expand and optimize its portfolio by pursuing opportunities within its existing footprint, in particular the rapidly growing Saudi market.

“Etisalat and Mobily are only in discussions at this time, and there can be no certainty as to whether the Potential Offer will be made,” according to the tadwul filing.

Mobily has appointed J.P. Morgan Saudi Arabia Company and Riyad Capital Company as joint financial advisers, and Abuhimed Alsheikh Alhagbani Law Firm as legal adviser to assist it in relation to the Potential Offer. Zawya