Zain has postponed a decision on whether to accept improved bids from Kingdom Holding and Batelco on a 25% stake in its Saudi business until 19 February, reports Reuters.
Kingdom Holding had set a 16 February deadline, which was an extension of its…
Zain has postponed a decision on whether to accept improved bids from Kingdom Holding and Batelco on a 25% stake in its Saudi business until 19 February, reports Reuters.
Kingdom Holding had set a 16 February deadline, which was an extension of its original 13 February date, for Zain Saudi Arabia to make a decision on its non-binding offer.
Citing a source close to Zain, the newswire said that its board wanted to give its executive committee and financial experts additional time to review the offers, which now include “enhancements”.
Zain KSA has been valued at US$714-730m.
Jamal al-Jarwan, the head of M&A at Etisalat, told delegates at the Mobile World Congress in Barcelona that he thought there was a 60% chance that his company’s efforts to buy a 46% stake in Zain for some US$11.7bn would be successful following due diligence.
Selling Zain KSA is key condition for Etisalat to be able to buy the stake in Zain, because Etisalat too is present in the Saudi Arabian mobile market via its Mobily business.
That said, it is unclear whether it is disagreement within Zain, the due diligence process or the Saudi sale that continues to push back Etisalat’s deadlines.
Zain is advised by Credit Agricole and/or UBS, Kingdom Holding is advised by RBS and Batelco by Citi. Etisalat is advised by Morgan Stanley and NBK, while Zain’s influential shareholders the Al Kharafis are advised by BNP Paribas.
