The Zain KSA Board of Directors, at a meeting held on Tuesday 14th June 2011 approved a non binding Term Sheet with the Consortium comprising of Kingdom Holding Company and Batelco Group, which paves the way for due diligence to be completed for the sale of 25% stake in Zain KSA .All companies involved expressed their satisfaction with the outcome.
On behalf of Kingdom Holding Company, Mr. Ahmed Halawani, Executive Director for Private Equity and International Investments and member of the Board said: “We just cleared a major milestone towards a successful closure. All parties negotiated in a very consultative and professional manner to ensure value is created for Zain KSA and their respective shareholders. We will continue to work as one team to conclude the due diligence stage smoothly and successfully and ensure that Zain KSA rapidly and profitably builds market share.”
Batelco Group CEO, Peter Kaliaropoulos added: “We were always confident that the Consortium would satisfactorily and amicably address all business matters which concerned the Directors of Zain KSA. 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 by all parties. We are all pleased with the agreement reached”.
The companies involved confirmed that the details of the Agreement between the Zain KSA and the Kingdom-Batelco Consortium will remain confidential till the deal is finalized, following the due diligence exercise.
Due Diligence is expected to be completed by end of August and the transaction finalized by end of Quarter 3, 2011.