Zain Saudi Arabia announced the transfer of the ownership of its subsidiary Zain Business Limited to the Public Investment Fund, with a nominal value of 10,000 riyals.
According to Arab Net, the company said in a statement that the Public Investment Fund had changed the name of the company from Zain Business Limited to the Golden Tees Investment Company for the Golden Tees Investment.
The company also signed an asset purchase agreement with Teess, through which the ownership of at least 8,069 towers will be transferred from Zain Saudi Arabia to Teess Gold, with a total value of 3.026 billion riyals.
Under the asset purchase agreement, Zain Saudi Arabia will receive about 2.42 billion riyals in addition to an ownership stake in Teess Gold amounting to 20% of the capital of Teess Gold, when the financial completion is achieved in accordance with the asset purchase agreement.
Zain Saudi Arabia has also signed a partner agreement with the Public Investment Fund, Prince Saud bin Fahd Al Saud, Sultan Holding Company and Tees Gold regarding the Golden Tees, where the ownership of the Public Investment Fund in the Golden Tees is 60%, Zain Saudi Arabia by 20%, and Prince Saud bin Fahd bin Abdulaziz by 10%, and Sultan Holding Company by 10%.
According to the asset purchase agreement, financial completion will be achieved when all statutory requirements are met, and no less than 3,000 towers out of 8,069 are transferred to the ownership of Teess Gold, and then the provisions of the asset purchase agreements and the signed partners agreement will come into effect.
The transfer of the towers will start in batches, provided that at least 8,069 towers will be transferred within a period not exceeding 18 months from the financial completion.
Zain Saudi Arabia said that this deal will result in a gain of 1.1 billion riyals resulting from the transfer of ownership of the 8,069 towers within the eighteen months following the financial completion.
Zain Saudi Arabia will work with all parties to complete the remaining stages.
Zain Saudi Arabia clarified that the decision of the Board of Directors to approve these offers was unanimous, after excluding the relevant parties in the deal, as the Chairman of the Board of Directors of Zain Saudi Arabia, Prince Nayef bin Sultan bin Muhammad bin Saud Al Kabeer, is the Chairman of the Board of Directors of Sultan Holding Company, as well as a member of the Board of Directors. Management Saud Al Bawardi with the United Company, in which Prince Saud bin Fahd bin Abdulaziz has an interest.
