We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sun 20 Mar 2011 05:10 PM

Font Size

- Aa +

Zain may sign Saudi ops stake sale next week

Preliminary agreement will make all sides liable to pay undisclosed break fee if they back out of deal

Zain may sign Saudi ops stake sale next week
Kuwaiti telecoms operator Zain will sign a preliminary contract to sell a stake in affiliate Zain Saudi for $950m by early next week, a source said (Getty Images)

Kuwaiti telecoms operator Zain

will sign a preliminary contract to sell a stake in

affiliate Zain Saudi for $950m by early next

week, a Zain source said on Sunday.

The preliminary agreement will make all sides liable to pay

an undisclosed break fee if they back out of the deal, the

source said.

The Saudi stake sale had been a prerequisite of Etisalat's

$12bn takeover of Zain.

Although Etisalat withdrew its offer on Saturday, Zain will

still sell its quarter-stake in Zain Saudi to joint bidders

Kingdom Holding and Bahrain Telecommunications Co (Batelco), the source said.

"The preliminary contract will be signed within the end of

this week or beginning of next week, because the banks

[creditors] have to see if they will accept transferring the

guarantees from Zain to the alliance," the source said.

Kingdom and Batelco agreed to guarantee part of Zain

Saudi's debt last week.

Zain Saudi's shares are up 1.4 percent, underperforming

Saudi Arabia's index TASI which is up 4.3 percent.

Arabian Business: why we're going behind a paywall

For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.