Saudi investment group Kingdom Holding has extended its deadline for buying a 25% stake in Zain Saudi Arabia from February 6 until February 13.
The group, which is 95% owned by one of King Abdullah’s nephews, Prince Alwaleed, last week made a non-binding…
Saudi investment group Kingdom Holding has extended its deadline for buying a 25% stake in Zain Saudi Arabia from February 6 until February 13.
The group, which is 95% owned by one of King Abdullah’s nephews, Prince Alwaleed, last week made a non-binding offer to buy the stake from Kuwaiti-based Zain Group. The “preliminary expression of interest” was “conditional on several factors which will be met before a binding offer is made”, according to a statement to the Saudi bourse.
Because the sale of Zain Saudi Arabia must take place in order for Etisalat to go ahead with its US11.7bn purchase of a 46% stake in Zain, it is possible that the speed of any potential sale might be more important than price. A Saudi buyer might enable quick approval by government and regulatory authorities, some believe.
Zain Saudi Arabia CEO Saad al Barrak, who some in the market believe may be working alongside Kingdom, has denied ongoing rumours – first reported in TelecomFinance back in November – that he is interested in – and seeking backers for – his own R2.75bn (US$733bn) buyout of 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.”
Batelco and Qtel have both expressed an interest in the unit, while MTN and France Telecom could be outside contenders.
