Zain (7030) has transferred ownership of its subsidiary Zain Business Limited to the Public Investment Fund (PIF).
The Deets
Zain added that the PIF changed the name of “Zain Business Limited” to “Golden Lattice Investment Company” (GLI).
The company also signed an asset purchase agreement with “Golden Lattice”, which will see the ownership of at least 8,069 towers transferred from Zain to “Golden Lattice” for a total of SAR 3.026 billion.
Gains
This deal will record gains of up to SAR 1.1 billion in exchange for the transfer of ownership of the towers in the following 18 months.
Why this Matters
Zain will earn about SAR 2.42 billion under the asset purchase agreement and will also hold a 20% ownership stake in “Golden Lattice”, when the deal is “financially complete”.
