RIYADH - Zain KSA has finalized the sale of its remaining 20% interest in Gulf Leasing Company (GLIC) to the Public Investment Fund (PIF) for SAR 726 million today. This transaction marks a significant step for the telecom giant, as it aims to channel the expected net profit of SAR 121 million into strategic investments within its core operations and enhance shareholder value.
This strategic divestiture comes after a decision made on February 15, 2022, when Zain KSA's board approved the sale following the resolution of conflicts of interest due to ownership ties with Sultan Holding Co. The move is designed to concentrate financial resources on Zain's primary telecom activities and to strengthen its market position.
The deal not only signifies a substantial gain over book value for Zain KSA but also underscores the company's commitment to optimizing its investment portfolio and redirecting capital towards more lucrative avenues within its telecom sector. The transaction is expected to yield considerable benefits for shareholders as Zain KSA continues to build on its operational performance.
In addition to this recent development, Zain KSA reported a substantial increase in its net profits after Zakat and tax, which surged to SAR 971 million over the past nine months. This figure represents a significant jump from the SAR 299 million recorded during the same period last year, illustrating a robust strategic growth trajectory for the company.
Zain KSA's latest financials and the successful disposal of its GLIC shares are anticipated to further bolster investor confidence. The company has announced that further updates regarding the impacts of this transaction will be shared in due course, as it remains focused on advancing its core business objectives and maximizing shareholder returns.
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