Bahrain’s Batelco will be going ahead with planned purchase of 25% stakes in Zain Saudi. Batelco, along with Kingdom Holding, its partner in the joint venture,?bought the stakes for a price of $950 million. Zain KSA is an affiliate of Kuwait’s Zain Telecom. The consortium’s offer does not include undertakings for the assumption of US$3.8 billion of Zain KSA`s debt.
The stake sale talks had run into disputes over management rights after the sale, but the CEO of Batelco, Peter Kaliaropoulos, confirmed that the management contract will be with Batelco as?they will have operating responsibility as per regulatory license requirements.
According to a note from HSBC, At present,? Zain receives 2.7 percent of Zain Saudi’s revenue in management and branding fees worth an estimated 2.4 riyals per share.
Batelco and joint bidder Kingdom Holding this week were given permission to start due diligence on their bid. Due Diligence is expected to be completed by end of August and the transaction finalised by the end of Q3.