Batelco-KHC bid for Zain KSA hits "snag" - Reuters

Management rights issue could derail the deal, a source tells Reuters
Batelco is keen to manage Zain KSA, a source told Reuters.
Batelco is keen to manage Zain KSA, a source told Reuters.


Batelco and Kingdom Holdings’ joint $950 million bid for a 25% stake in Zain KSA is facing problems related to management rights, according to a report from Reuters.

Kuwait-based Zain Group accepted an offer from Batelco and Kingdom Holding to buy its stake in Zain KSA in March, but the deal now appears to be facing its first hurdle.

A source close to the proceedings told Reuters that the deal could fail because of a potential disagreement about who will manage Zain KSA.

Batelco is keen to manage the operation and could lower its bid if it is unable to gain management rights, the source said.

“If Batelco insists on getting the management contract and the Saudis refuse, it (the deal) will fall because Batelco will then come back to Zain Kuwait with a reviewed and lower offer ... which will not be accepted at all by Zain Kuwait,” the source told Reuters.

The source added that Batelco wants to “enjoy the same privileges” as Zain Kuwait, which apparently received 4% of Zain KSA’s annual revenue for managing the unit.

Speaking to CommsMEA last week, Kaliaropoulos said that he was optimistic about the deal, which he said could be completed by July 22 if the due diligence process progressed smoothly.

In Q1, Zain KSA reduced operational losses by 46% to SR233 million ($62 million), compared to SR435 million in the same period last year. Revenues reached SR1.5 billion, a 36% increase compared to same period in 2010.


REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story