After several months of delays Bayanat, a subsidiary of Saudi mobile operator Mobily, has completed its due diligence in order to buy a stake in fixed-line telco Etihad Atheeb Telecom (Go).
The two sides are now discussing the different steps of the…
After several months of delays Bayanat, a subsidiary of Saudi mobile operator Mobily, has completed its due diligence in order to buy a stake in fixed-line telco Etihad Atheeb Telecom (Go).
The two sides are now discussing the different steps of the deal process, according to a stock exchange announcement.
In the first stage, Go would seek shareholder approval to write off up to 100% of its accumulated losses by cancelling shares to decrease its capital.
In the second stage, Bayanat would subscribe to up to 20% of Go’s share capital by acquiring the founding shareholders’ subscription rights.
The parties stressed that no definitive agreements have been signed and that completion of the proposed transaction is still subject to regulatory approvals.
In August last year, Mobily agreed with some of Go’s founding shareholders to acquire a stake in the company for an undisclosed amount.
But discussions progressed slowly only.
In November, Mobily and Go extended deal talks to 30 January 2014, cancelling exclusivity undertakings between the parties.
And in late January, the long-stop date of the memorandum of understanding was pushed back by 90 days to 30 April because of “challenges” linked to the structuring of the proposed transaction.