Batelco, KHC enter into term sheet with Zain KSA
Manama , July 20, 2011
Kingdom Holding Company (KHC) and Bahrain Telecommunications Company (Batelco) today announced that they have entered into a non-binding term sheet with Mobile Telecommunications Company Saudi Arabia (Zain KSA).
The term sheet is in respect of the proposed acquisition by the consortium comprising KHC and Batelco of all the shares held by Kuwait's Mobile Telecommunications Company (Zain) in Zain KSA, a Batelco statement said.
This follows Zain's acceptance of a non-binding offer from the consortium to acquire such shares, being 25 per cent of the total issued shares of Zain KSA, as previously announced by each of Zain, KHC and Batelco, the statement said.
The two companies had earlier announced plans to make a $950 million purchase of a quarter-stake in the telecom operator.
On July 13, Batelco's chief executive Peter Kaliaropoulos told Reuters he expects the deal, which was initially agreed in March, to be completed within eight weeks.
A term sheet is a document outlining the material terms and conditions of a business agreement. After a term sheet has been 'executed', it guides legal counsel in the preparation of a proposed 'final agreement'. It then guides, but is not necessarily binding, as the signatories negotiate, usually with legal counsel, the final terms of their agreement.
- TradeArabia News Service