Zain KSA approves PIF-led consortium’s bid to acquire 80% stake – The National

Zain KSA approves PIF-led consortium’s bid to acquire 80% stake – The National

Saudi Arabia’s second-largest telecoms company Zain KSA has approved a Public Investment Fund-led consortium offer to acquire an 80 per cent majority stake in its 8,069-tower infrastructure for more than 3 billion Saudi riyals ($807 million).

Under the deal, the kingdom’s sovereign wealth fund has acquired a 60 per cent stake in Zain KSA, while Sultan Holding company and Prince Saud bin Fahad have each acquired 10 per cent.

Zain KSA, also known as Mobile Telecommunications Company Saudi Arabia, retained the remaining 20 per cent share in the unit. However, the PIF has a call option to buy the remaining 20 per cent for a specified amount, the company said on Tuesday.

This transaction creates “enormous shareholder value” and gives Zain KSA “greater financial muscle” to invest in latest technologies and innovation that enhance the customer mobile and data experience, said Bader Al Kharafi, vice chairman of Zain KSA.

“The proceeds of this sale will enhance the company’s financial liquidity and profitability … the unlocking of capital to focus on higher yielding digital investments and optimisation of infrastructure that creates internal efficiencies is a core element of Zain’s transformational ‘4Sight’ strategy,” Mr Al Kharafi said.

Zain KSA is the Saudi unit of Kuwait-based telecoms