Saudi Arabian investment firm Kingdom Holding has offered to buy out Kuwait’s Zain Saudi unit. The firm posted its expression of interest in a statement on the Saudi Bourse, but did not specify its price per share. The offer comes as UAE-based Etisalat continues its due diligence process to acquire a 46 per cent stake in Zain Group.

Saudi Arabian regulations prevent one operator from having interests in another. As Etisalat has a stake in mobile operator Mobily, Zain has been under pressure to sell its 25 per cent stake in the unit, valued at $733m.

An initial deadline for the Zain-Etisalat acquisition was set for 15 January, but it was missed after Zain shareholders failed to provide the necessary information. Etisalat hopes the due diligence process will be completed by the end of February this year. If successful, it will be the largest acquisition deal in the Middle East, valued at about $12bn.

Zain shareholders Al Fawares Holding previously threatened to sue anyone who attempts to buy Zain Saudi.

So far Qatar’s Qtel and Bahrain’s Batelco have shown an interest in purchasing Zain Saudi, but neither has submitted an offer.  

Prince Alwaleed Bin Talal owns a 95 per cent stake in Kingdom Holding. The firm also owns the Rotana Group and Citigroup.

Kingdom Holding’s offer is valid until 6 February 2011.