UAE’s Etisalat says no voting rights for foreign shareholders; gives govt veto rights

Abu Dhabi-based Etisalat will not grant foreign shareholders the right to vote in general assembly meetings, the company said on Wednesday as it prepares to lift a ban on foreign ownership.

Meanwhile, the United Arab Emirates’ federal government will hold a special share with veto rights.

Foreign investors will be entitled to own up to 20 percent of the company’s shares, provided that such shares will not hold any voting rights. However, they will still be allowed to attend meetings, the former telecom monopoly added in a statement to the Abu Dhabi Securities Exchange (ADX).

The government will be granted rights to approve mergers and employee share option plans, participate as a strategic investor, and permit the participation of other strategic investors.

In June, the UAE government lifted a restriction on foreign ownership of the telco’s shares. It will, however, continue to hold a 60 percent stake in the firm.

Ahead of the move, the company’s name will be changed to Emirates Telecommunications Group Company PJSC. Etisalat has one year to implement the mentioned changes, the statement added.