Zain accepts offer for Saudi unit

The on again off again sale of Zain’s Saudi Arabian operation looked a bit more solid on Tuesday, when the Kuwait-headquartered carrier accepted an offer, from a joint venture made up of Bahrain’s Batelco and Saudi Arabia’s Kingdom Holding Company (KHC).

According to local press reports, Zain has accepted an offer of $950m for its 25 per cent stake in Saudi’s Zain KSA. Yet the Middle Eastern carrier has released a statement saying that it will only determine the percentage of ownership for Kingdom Holding Company in Zain KSA after the due diligence has been completed.

If successful, the acquisition may put UAE operator Etisalat’s move to buy a large stake in Zain back on track. In order for the Etisalat deal to go ahead, Zain is required to offload its Saudi unit, as Etisalat also has a presence in the country via Mobily.