United Arab Emirates-based operator group Etisalat (e&) has made an offer to increase its stake in Saudi Arabia’s Etihad (Mobily) in a deal that could be valued at up to US$2.12 billion.
In a note to the Saudi stock exchange, Etisalat proposed a price of SAR47 (US$ 12.57) per Mobily share, which is a 22% premium to the closing price on March 15, valuing Mobily at ZAR36.2 billion riyals (US$9.65 billion).
A firm offer hasn’t been made by Etisalat with discussions still ongoing currently, as the UAE company seeks to increase its share from 29% to 50% plus one share.
Etisalat has outlined plans to rapidly grow the telecoms market in the kingdom of Saudi Arabia with acquisitions a part of its roadmap. The company said it “aims to deepen the strong existing ties with Mobily, with the potential for further collaboration and realization of greater synergies”, BNN Bloomberg reported.