Batelco and Kingdom Holding expect Zain Saudi deal to be completed by end-Q3

The Batelco- Kingdom Holding consortium today issued a statement announcing it was granted access to Zain Saudi’s records thus ensuring the deal can progress to the final stages.

The board of directors of Zain Saudi has approved a non binding term sheet with the Kingdom Holding Company and Batelco Group consortium, which paves the way for due diligence to be completed for the sale of the 25 per cent stake in Zain Saudi .

Batelco Group CEO, Peter Kaliaropoulos, commented that “we were always confident that the consortium would satisfactorily address all matters raised by Zain Saudi. This is a complex transaction involving four different companies. Understandably all issues relating to the due diligence exercise and the scope and commercial terms of the management agreement required careful consideration and negotiation by all parties.”

The due diligence is expected to be completed by end of August and the transaction finalised by the end of Q3.

Speculation last month suggested that the deal for the Kingdom Holding/Batelco consortium to acquire the stake in Zain Saudi could run aground as a result of Batelco not being guaranteed management control of the cellco. It had been suggested Batelco would consider lowering its offer for the stake if it was not able to secure management rights, a move that could affect the entire transaction being ratified.