Zain verdict 'won't derail $950m Saudi deal'
Dubai, September 26, 2011
A court ruling against Kuwait's Zain will not derail a $950 million deal to sell its quarter-stake in affiliate Zain Saudi, the chief executive of joint bidder Bahrain Telecommunications (Batelco) said on Monday.
Peter Kaliaropoulos told Reuters he was awaiting clarification from Zain on any implications from Sunday's court ruling.
The court ruled that Zain's April annual shareholders meeting was invalid, upholding a case brought by a former board member who opposed the election process.
"The court case was in Kuwait, not Saudi Arabia," said Kaliaropoulos. "If it was detrimental, we would have heard straight away. I can only judge that because we haven't heard at this point in time, it's not a material impact."
In March, Batelco and joint bidder Kingdom Holding agreed to buy the stake in indebted telecoms operator Zain Saudi, with the bidders poised to get management control.
Kaliaropoulos reiterated that he expected due diligence on the deal to be completed by the end of September.-Reuters