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UAE telco e& decided to suspend discussions on increasing its stake in Saudi-listed Etihad Etisalat Company (Mobily) following a surge in the latter’s share prices, Group CEO Hatem Dowidar told Asharq Business, an Arabic financial news site.
“We may reopen discussions in the future,” he added.
Mobily’s shares have jumped by more than 42.5% since &e submitted its offer in March 2022 to raise its stake in the Saudi telecom from 28% to 50%, plus one share.
Mobily share price has risen by 12.5% since the beginning of the year, the report said.
Dowidar said that the plan was put on hold after Mobily shares reached a record high and any bid offer should surpass the market share price, which exceeded the allocated investment.
He added that Mobily’s recent positive financial performance will benefit the UAE telecom operator, which holds the largest stake in the Saudi company.
(Editing by Seban Scaria seban.scaria@lseg.com)