Prince Alwaleed's Kingdom Holding in Saudi Arabia

Prince Alwaleed's Kingdom Holding in Saudi Arabia 
Kingdom Holding Co., controlled by Saudi billionaire Prince Alwaleed bin Talal, offered to acquire Mobile Telecommunications Co.’s 25 percent stake in Zain Saudi Arabia, valued at about 2.6 billion riyals ($690 million). The sale of the Saudi unit would ease the purchase of a majority stake in Mobile Telecommunications, or Zain as Kuwait’s biggest phone company is known, by Emirates Telecommunications Corp., known as Etisalat. Based on the 1.4 billion outstanding Zain Saudi shares and a current share price of 7.35 riyals, the 25 percent stake is valued at about 2.6 billion riyals. Kingdom Holding’s expression of interest is valid until 5 p.m. in Riyadh on Feb. 6, the company said in a statement to the Saudi bourse.
Zain Saudi Arabia fell 0.7 percent to 7.35 Saudi riyals at 12:35 p.m. in Riyadh. Zain’s shares advanced 2.8 percent to 1,460 fils in Kuwait trading. Kingdom Holding sent Mobile Telecommunications’ board “a non-binding offer and a preliminary expression of interest” to buy the stake, the Saudi investment company said in a statement today. Zain said it will study the offer, according to a statement to the Kuwait Stock Exchange.
Etisalat is in talks to buy a majority stake in Zain and has said Zain needs to sell its stake in the Saudi unit in a “timely fashion” for the deal to proceed. Etisalat is making “good progress” with its due diligence of Zain after missing a Jan. 15 deadline to reach an accord on its $12 billion offer, Abu-Dhabi based Etisalat said Jan. 29.

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