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UAE’s e& Ends Talks to Raise Stake in Mobily to 50%

The UAE telecoms group e& has announced the suspension of talks to increase its share in Etihad Etisalat of Saudi Arabia.

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:

  1. 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.
  2. Largest Shareholder: Formerly known as Etisalat, e& is Mobily’s largest shareholder with a 27.99% stake.
  3. 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.
  4. 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.

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