Zain, the Kuwaiti telecommunications operator, last night announced a series of job cuts after its share price sank more than 7 per cent on worries that Etisalat's proposed US$11.7 billion (Dh42.97bn) acquisition of the company is hanging in the balance.
Several senior executives are among the 30 to 40 people who will be affected by the cuts.
On Saturday, Zain announced that three senior executives, including the chief operating officer, would leave the company.
The job cuts were announced yesterday after trading closed on the Kuwaiti bourse. Shares in Zain lost 7.25 per cent of their value - their steepest decline in eight months - sliding to 1.28 dinars.
The share price slide came after Zain rejected offers for its 25 per cent stake in Zain Saudi Arabia from Kingdom Holding, Bahrain Telecommunications and a consortium led by Al Riyadh Group.
Batelco said its offer to acquire the stake in Zain Saudi Arabia included a "significant amount of new cash", Bloomberg News reported. The Saudi billionaire Prince Alwaleed bin Talal bin Abdulaziz Al Saud, who runs Kingdom Holding, told Zawya Dow Jones the offer to buy Zain was reasonable for the shareholders of both companies.
The failure of the three bids casts doubt on Etisalat's proposed $11.7bn acquisition of a 46 per cent controlling stake in Zain. A sale of Zain's stake in the Saudi unit was a precondition of the Etisalat deal.
The decline in Zain's share price suggests "investors are not as confident as they were earlier that this Etisalat transaction will conclude soon", said Irfan Ellam, a telecoms analyst with Al Mal Capital.
Shares in Etisalat fell 0.91 per cent to Dh10.90 on the Abu Dhabi Securities Exchange, after a slight gain in early trading.
The Kharafi Group, one of the main shareholders in Zain, said it would not accept Etisalat extending its due diligence on Zain beyond the end of this month, Reuters reported.
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COMPANY%20PROFILE
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The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
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Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants