Saudi investment group Kingdom Holding has made a non-binding offer to buy Zain’s Saudi Arabian business, according to an official statement to the Saudi stock exchange cited by Zawya.
The “preliminary expression of interest”, which is “conditional on…
Saudi investment group Kingdom Holding has made a non-binding offer to buy Zain’s Saudi Arabian business, according to an official statement to the Saudi stock exchange cited by Zawya.
The “preliminary expression of interest”, which is “conditional on several factors which will be met before a binding offer is made”, is valid until February 6.
Kingdom, is 95% owned by one of King Abdullah’s nephews, Prince Alwaleed.
Zain Saudi Arabia CEO Saad al Barrak last week denied ongoing rumours – first reported in TelecomFinance back in November – that he is interested in – and seeking backers for – a R2.75bn (US$733bn) buyout of Zain’s 25% stake in the unit. He told CNBC Arabia that the company regularly speaks to investments funds as part of roadshows “to encourage people to invest in the company in general”. He added that the company also kept the lines open with banks “to refinance the company.”
Were it to be accepted, Zain would fulfil one of the key conditions set by UAE-based Etisalat as part of its US$11.7bn offer to buy a 46% stake in the Kuwait-based company. Because Etisalat too owns a business in the kingdom – Mobily – the combined group would have to divest other interests in order to comply with FDI caps.
The agreement, which is being led by powerful Zain shareholder the al-Kharafi Group, has met vocal opposition from Zain’s smaller shareholders, who believe that wider approval should have been sought.
Etisalat extended its own January 15 deadline until January 29.
Spokespeople for Zain and Etisalat declined comment.
