Due diligence ends with no sale
The joint-bid from Saudi Arabia’s Kingdom Holding Company (KHC) and Bahrain’s Batelco for a 25 per cent controlling stake in Zain Saudi Arabia has collapsed as reported by MEED (28:09:11).
“The consortium concluded that the terms and conditions as set out in its non-binding offer could not be met to its satisfaction,” read a statement issued to the press adding that the decision is in the best interest of their shareholders.
KHC and Batelco submitted their $950m offer for the stake back in March this year and was accepted by Kuwait’s Zain, which is suffering from spiraling debts.
But neither company was able to secure financing for the purchase, with Saudi Arabian banks wary of taking on the $5.5bn debts of Zain KSA.