Zain Saudi unit has alternative offers- paper

Zain Saudi unit has alternative offers- paper

Availability of having options allowed Etisalat to focus on completing their due diligence for the stake buy before the end February deadline.

February 22, 2011 10:42 by Reuters

Alternative options have emerged for the sale of Kuwaiti telecoms carrier Zain’s Saudi unit, a local newspaper said on Tuesday citing sources which it did not identify.

A proposed $12 billion takeover of Zain by Etisalat depends on the sale of the assets in Zain Saudi , valued at $750 million, due to regulatory requirements.

Availability of having options allowed Etisalat to focus on completing their due diligence for the stake buy before the end February deadline, the paper said without naming new bidders.

Etisalat said on Sunday that the due diligence process is undergoing and is expected to be completed by end of February.

Zain rejected all three offers for its Saudi assets on Saturday. Saudi billionaire Prince Alwaleed bin Talal’s Kingdom Holding , Bahrain Telecommunications and an investment consortium led by Al Riyadh Group had bid for the stake.

“The confusion that appeared the past couple of days was partly due to the inability to determine the time table for the deal, as Etisalat was expecting (hoping) to get over the Saudi assets obstacle prior to completing the due diligence,” the sources told the newspaper.

(Reporting by Kuwait newsroom; Editing by Dinesh Nair)