Zain due diligence to continue

23 December 2010

Court rules against Kuwaiti investors

A Kuwaiti court has dismissed a lawsuit from Zain shareholder Al-Fawares Holding, reports Reuters.  

Al-Fawares, which owns 4.5 per cent stake in the Kuwaiti mobile operator, is likely to appeal. The company was unhappy Zain had opened its books to Abu Dhabi’s Etisalat without informing the entire board. It took legal action in early December in a bid to halt the due diligence process, which could have delayed the $12bn transaction.

Etisalat has come across a number of hurdles during the due diligence process. The company is now seeking a 40 per cent stake after Kuwait’s Kharafi Group failed to gain the support of enough shareholders to secure the sale of the initial 46 per cent stake. 

The deadline for the sale has been set for 15 January 2011.

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