Kuwait-based telco Zain Group has confirmed that Bahraini incumbent Batelco and Saudi investment firm Kingdom Holding are to pay US$950m for its 25% stake in Saudi unit Zain KSA. Zain KSA will pay another US$250m.
In an announcement to the Kuwaiti stock…
Kuwait-based telco Zain Group has confirmed that Bahraini incumbent Batelco and Saudi investment firm Kingdom Holding are to pay US$950m for its 25% stake in Saudi unit Zain KSA. Zain KSA will pay another US$250m.
In an announcement to the Kuwaiti stock exchange cited by Reuters, the company said that the two agreed buyers must guarantee part of the unit’s US$3.8bn in debt as part of the terms of the deal.
“Guarantees will be settled and ended as part of transferring the ownership, and restructuring Zain Saudi,” according to the statement.
Yesterday, the Zain valued the deal at US$1.2bn, adding that the buyers would guarantee part of KSA’s debt and invest some of their own money in the business.
Today, Kingdom Holding issued its own statement clarifying that it and Batelco would pay US$950m in cash, and that Zain KSA would become an independent company with no guarantees.
A spokesperson for Zain said that a statement tomorrow would clarify all the parties’ positions on debt guarantees. Spokespeople for Kingdom and Batelco could not be reached for comment by press time.
Saudi billionaire Prince Alwaleed bin Talal, the owner of Kingdom Holding, has meanwhile exalted his company’s partnership with Batelco, which is run by a relative of King Hamad Isa al-Khalifa, telling Arab News: “Our confidence in the leadership of Bahrain is infinite”.
Batelco, announcing the deal in its own statement at the beginning of the week specified that the deal did not include Zain’s debt.
Kingdom is advised by RBS while Batelco is advised by Citi.
Credit Agricole and/or UBS has been acting as adviser to Zain on its acquisition by Etisalat and its sale of the stake in Zain KSA.
