Zain to acquire Mada Communications

15 November 2011

Telecoms operator plans to takeover joint venture in Kuwait

Kuwaiti telecoms operator Zain is considering an acquisition of privately-owned Mada Communications Group, a Kuwait-based wireless internet and converged telecoms services provider.

According to sources familiar with the deal, “talks began a few months ago and the deal is likely to close soon”.

Mada was incorporated in 2007 as a joint venture between Mada Communications Group and Zain Jordan. It currently operates in Jordan, Kuwait, Lebanon and Sudan.

Zain declined to comment on the acquisition.

“Zain management is always considering opportunities that add value to our shareholders and will advise all stakeholders in a timely fashion of any relevant occurrence or acquisition of any asset,” says Ossama Matta, chief financial officer of Zain Group.

The telecoms operator has struggled this year with the collapse of two acquisition deals, one with the Emirates Telecommunications Corporation (Etisalat) and another with the Kingdom Holding and Batelco consortium for its Saudi Arabian operation.

Its share price has fallen by 38 per cent since the beginning of the year.

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