Saudi Zain Agrees Terms Of Sale With Kingdom Holding, Batelco

Wednesday, Jul 20, 2011

DUBAI (Zawya Dow Jones)--Mobile Telecommunications Co. Saudi Arabia (7030.SA), better known as Zain KSA, said Wednesday it had entered into a non-binding agreement with Kingdom Holding Co. (4280.SA) and Bahrain Telecommunications Co. (BATELCO.BH), or Batelco, relating to the two companies' proposed acquisition of the Saudi mobile operator.

The non-binding term sheet sets out the "key terms of the proposed acquisition," including the due diligence exercise that was approved in principle in June, Zain KSA said in a statement posted on the Saudi bourse website.

Zain KSA's parent, Mobile Telecommunications Co. (ZAIN.KW) of Kuwait, in April accepted an offer from Kingdom Holding and Batelco to buy the 25% stake it owns in the Saudi unit.

The deal is estimated by some to be worth about $1.2 billion and could ease concerns about Zain KSA's balance sheet, analysts have said.

Zain KSA's shares closed unchanged at 6.40 Saudi riyals ($1.7) on the Riyadh bourse Tuesday.

-By Angus McDowall of Dow Jones; +971-4-446-1685, angus.mcdowall@dowjones.com

(END) Dow Jones Newswires

20-07-11 0717GMT