Mobile Telecommunication Company Saudi Arabia (Zain KSA) announces selling the stakes in Golden Lattice Investment Company “GLIC”
2023-11-20 18:47:11
| Element List | Explanation |
|---|---|
| Introduction | Zain KSA announces the sale of the stakes it owns in Golden Lattice Investment Company “GLIC”, amounting to 20% of the capital of “GLIC”, to the benefit of the Public Investment Fund “PIF”. |
| Transaction Details | This deal is linked to the company’s announcement published on 15-02-2022 regarding the final offer by the Public Investment Fund “PIF” that included the right to acquire the remaining share of Zain KSA of “GLIC” (20%). |
| Transaction Value | SAR 726 million |
| Transaction Terms | N/A |
| Parties of the Transaction | PIF and Zain KSA. |
| Transaction Execution Date | 2023-11-20 Corresponding to 1445-05-06 |
| Description of the Business of the Asset forming the Subject Matter of the Transaction | The main activity of “GLIC” is focused on providing wholesale infrastructure services. |
| Asset Book Value | SAR 605 million |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | It does not apply, as “GLIC” has not completed a period of one year from the date of its creation. |
| Transaction reasons | This transaction is linked to Zain KSA’s announcement published on 15-02-2022 regarding the final offer by PIF that included the right to acquire the remaining 20% shares of “GLIC” owned by Zain KSA. |
| Expected Impact of the Transaction on the Company and Its Operations | SAR 121 million Net profit. |
| Details of Using The Proceeds of the Asset Sale | Zain KSA will use the proceeds of the sale of its remaining 20% shares of “GLIC” to maximize the benefit for its shareholders through a funding of its investment and its core business. |
| Related Parties | As part of Zain KSA’ transparency, we would like to clarify that the unanimous decision to approve the final offer, that the company have announced on Tadawul on 15-02-2022, was after excluding the following members: H.H. Prince Naif bin Sultan, Mr. Saud AlBawardi, Mr. Raied AlSaif (a board member at the time of the decision), and Mr. Hisham Attar (a board member at the time of the decision) from voting on the offers, because they were related parties. As H.H Prince Naif bin Sultan is the Chairman of Sultan Holding Company, which owns 10% of GLIC capital, while Mr. Hisham Attar worked for PIF, Mr. Raied AlSaif worked for Sultan Holding Company, Mr. Saud Al-Bawardi works for United Company, where H.R.H Prince Saud bin Fahd bin Abdulaziz have an interest in, as H.R.H owns 10% of GLIC capital. |
| Additional Information | Any substantial developments will be announced in due course. |