Oct 12 2011 |
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Zain Saudi Says CEO Saad Al Barrak Resigns
Wednesday, Oct 12, 2011
(This story was originally published Tuesday.)
-- Al Barrak is replaced by Badr bin Nasser Al Kharafi
-- Follows failure of joint bid for Zain KSA
Khaled bin Suleiman Al Omar will take over as acting chief executive and managing director, pending the approval of the company's general assembly for the appointment of Al Kharafi as permanent CEO, the company said in a statement posted on the Saudi bourse.
But Al Barrak's departure follows soon after the failure of a joint bid for 25% of Zain KSA by Kingdom Holding (4280.SA) and Bahrain's Batelco. The deal, estimated to be worth as much as $1.2 billion, failed due to disagreements with Zain KSA's lenders, according to Zain KSA chairman Prince Hussam bin Saud.
The failure to strike an agreement over Zain KSA is the latest in string of "almost deals" within the region's telecoms sector. Back in March, U.A.E.-based Emirates Telecommunications Corp. (ETISALAT.AD), or Etisalat, the region's biggest telecom provider by market value, ditched a near-$12 billion plan to buy 46% of Kuwaiti rival Zain .
Analysts had previously said that sale of a stake in Zain KSA would be complicated by issues such as management fees structure, debt guarantees currently provided by Zain Group, shareholder subordinated loans to Zain KSA as well as other contingent liabilities of Zain KSA.
Zain KSA, which began operations in Saudi Arabia in March 2008, said in February it will put forward a new capital reorganization plan to shareholders as it looks to wipe out accumulated losses and eventually raise fresh cash to support its expansion plans.
The firm's chairman Prince Hussam bin Saud said that after the joint bid failed, Zain Group is no longer considering selling its stake in the Saudi firm, which will focus instead on speeding up its capital restructuring plan.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
12-10-11 0403GMT
CORRECT: Zain Saudi Says CEO Saad Al Barrak Resigns
Wednesday, Oct 12, 2011
("UPDATE: Zain Saudi Says CEO Saad Al Barrak Resigns," first published at 1500 GMT Tuesday and repeated at 0403 GMT Wednesday, misstated the new CEO in the first paragraph. The correct version follows:)
-- Al Barrak is replaced by Khaled bin Suleiman Al Omar
-- Follows failure of joint bid for Zain KSA
RIYADH (Zawya Dow Jones)--Saudi Arabian telecommunications company Zain KSA (7030.SA) said Tuesday that it will appoint Khaled bin Suleiman Al Omar as its new chief executive officer and managing director, following the resignation of Saad Al Barrak.
The company, in a statement, also named Badr bin Nasser Al Kharafi as a replacement board member.
Zain KSA didn't give a reason for Al Barrak's resignation, and the former CEO, who has been with Zain since 2002, was not immediately available for comment. In February last year, he resigned as the chief executive officer of Kuwait-based Mobile Telecommunications Co, or Zain Group (ZAIN.KW), Zain KSA's parent company.
But Al Barrak's departure follows soon after the failure of a joint bid for 25% of Zain KSA by Kingdom Holding (4280.SA) and Bahrain's Batelco. The deal, estimated to be worth as much as $1.2 billion, failed due to disagreements with Zain KSA's lenders, according to Zain KSA chairman Prince Hussam bin Saud.
The failure to strike an agreement over Zain KSA is the latest in string of "almost deals" within the region's telecoms sector. Back in March, U.A.E.-based Emirates Telecommunications Corp. (ETISALAT.AD), or Etisalat, the region's biggest telecom provider by market value, ditched a near-$12 billion plan to buy 46% of Kuwaiti rival Zain .
Analysts had previously said that sale of a stake in Zain KSA would be complicated by issues such as management fees structure, debt guarantees currently provided by Zain Group, shareholder subordinated loans to Zain KSA as well as other contingent liabilities of Zain KSA.
Zain KSA, which began operations in Saudi Arabia in March 2008, said in February it will put forward a new capital reorganization plan to shareholders as it looks to wipe out accumulated losses and eventually raise fresh cash to support its expansion plans.
The firm's chairman Prince Hussam bin Saud said that after the joint bid failed, Zain Group is no longer considering selling its stake in the Saudi firm, which will focus instead on speeding up its capital restructuring plan.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
12-10-11 1204GMT
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