Mobily’s subsidiary completes due diligence to buy Atheeb

Etihad Telecom Company (Mobily) said its subsidiary Bayanat has finalized the due diligence process for acquiring Etihad Atheeb Telecom Company (Go).

The company said in a statement that Bayant completed commercial, financial, technical and legal checks of the target company and entered into negotiations with:

1. Etihad Atheeb Telecom for appointing a data service provider to operate Etihad Atheeb based on a management agreement to be signed by the parties.

2. Founding partners and Etihad Atheeb to buy a minority stake in Atheeb.
 

The data service provider, Atheeb and founding shareholders are negotiating a partial restructuring of the target company to complete the process, as follows:

1. As prerequisite for the acquisition, Atheeb shall obtain its shareholders’ approval to cover up to hundred percent (100%) of Atheeb’s accumulated loss by reducing listed capital.

2. The data service provider will buy 20 percent stake of Atheeb’s capital through the purchase of rights shares from founding shareholders, and practicing such rights with Atheeb offering rights shares to shareholders.

Mobily said no final deal is reached yet, and any agreement will be subject to approvals from regulators including the Communications and Information Technology Commission and Capital Market Authority.

According to Argaam’s data, Bayanat signed a memorandum of understanding with some founding shareholders of Atheeb Telecom in August 2013 to buy a controlling stake in the firm.