Foreign investors will be permitted to buy shares in Etisalat from next week, after the U.A.E.-based telco’s board approved amendments to the company’s articles of association.
In a statement on Sunday, Etisalat said its shares, which change hands on the Abu Dhabi Stock Exchange (ADX), will be made available to non-U.A.E. individuals from Tuesday 15 September.
Etisalat first announced the move in August, hailing it as an historic moment for the operator that sends a strong signal that the U.A.E. is open for global business.
However, it is worth remembering that Etisalat has placed tight restrictions on foreign investors.
Non-U.A.E. entities are limited to purchasing up to a 20% stake in Etisalat. Their shares will grant them admission to general meetings, but will not grant them any voting rights.
In addition, the government will retain what Etisalat calls a "special share" in the company. This grants it veto rights over key decisions including mergers and acquisitions, approving ownership of more than 5% of Etisalat by a single shareholder, and allowing the U.A.E.’s shareholding to fall below 51%.
