KHC-Batelco consortium terminates Zain KSA deal

Kingdom Holding Company (KHC) and Batelco Group consortium said that it will not proceed with making a binding offer to acquire Zain Group's 25% stake in Zain KSA. This decision follows a period of due diligence and discussions with Zain Group and other stakeholders.

The consortium said that the terms and conditions as set out in its non-binding offer could not be met to its satisfaction. Both companies in the consortium stated that this decision is in the best interests of their respective shareholders.

Zain Group, acting in the best interest of its shareholders, looks forward to assisting Zain KSA in the development of the latter's mobile telecommunications business in the Kingdom in the future, said a Zain statement.

Earlier this month, KHC and Batelco Group expected to complete the due diligence by this month end.

In March, Kuwait-based Zain Group accepted an offer from Batelco Group and KHC, which is owned by Saudi Arabian billionaire Prince Alwaleed, to buy its 25% stake in Zain KSA for about $950 million.