Al-Babtain, SEII extend stake purchase MoU for 2 months

Al-Babtain Power and Telecommunication Co. building

Al-Babtain Power and Telecommunication Co. said its Egypt-based unit, Al Babtain Power and Telecommunication Egypt, extended the memorandum of understanding (MoU) signed with Saudi Egyptian Industrial Investment Co. (SEII) for an additional two months until April 28, 2021.

The deal is extended as more time is needed to finish some legal points of subscription and shareholders agreements with the same conditions in the letter of intent (LoI), the company said in a bourse filing.

The delay from the previously-announced dates came because the discussion between the two parties around some legal points of subscription and shareholders agreements are still ongoing.

There is no financial impact from the MoU extension and further updates will be announced in due course, the statement added.

In December 2019, Al-Babtain said that its subsidiary in Egypt signed a LoI with SEII to sell a stake in the Egypt-based company through capital hike, according to data compiled by Argaam.

The extension to the MoU was announced on April 2, 2020, until June 2, 2020, following which it was further extended for another two months until Aug. 2, 2020, due to the precautionary measures for COVID-19.

The MoU was then extended for another three months until Oct. 28, 2020, following which it was extended again until Jan. 28, 2021.

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