(Bloomberg) -- Etisalat, the biggest phone operator in the United Arab Emirates, proposed to boost its shareholding in Saudi Arabia’s Mobily in a deal that could be valued at $2.12 billion.

Etisalat offered 47 riyals a share for a higher stake in Mobily, a 22.2% premium to its Tuesday’s closing price, according to regulatory filings. The offer values Mobily at 36.2 billion riyals ($9.65 billion).

Etisalat hasn’t made a firm offer and the companies are only in discussions at this time. The UAE phone operator already holds 28% of Mobily and is seeking to raise it to 50% plus one share.

Saudi Arabia is the biggest Gulf economy, and the potential purchase is part of Etisalat’s plans to expand in the rapidly growing telecom market in the kingdom. Etisalat “aims to deepen the strong existing ties with Mobily, with the potential for further collaboration and realization of greater synergies,” according to the company.

Etisalat is being advised by HSBC Saudi Arabia, while JPMorgan Saudi Arabia and Riyad Capital are joint financial advisers to Mobily.

Etisalat market insights:

• Stock advanced 64% in the past 52 weeks. The UAE Abu Dhabi gained 65%
• Etisalat trades at 31 times its estimated earnings per share for the coming year
• The company’s dividend yield is 3.5% on a trailing 12-month basis and 2.3% based on Bloomberg Dividend Forecasts for the next 12 months

Mobily market insights:

• Stock advanced 29% in the past 52 weeks. The Saudi Tadawul gained 28%
• Etihad Etisalat trades at 23 times its estimated earnings per share for the coming year
• The company’s dividend yield is 1.3% on a trailing 12-month basis

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