Bahrain Telecommunications is still weeks away from completing a $950 million deal to buy a quarter-stake in telecoms operator Zain Saudi , the joint bidder has told Reuters. Kuwaiti group Zain in March agreed to sell its 25-percent stake in Zain Saudi to Batelco and Prince Alwaleed Bin Talal's Kingdom Holding. In July, Batelco estimated the deal would be completed within eight weeks. "Due diligence is a work in progress," Batelco Chief Executive Peter Kaliaropoulos said. "It is fair to say the deal will be completed in the coming weeks. Whether it is two or three weeks or six or seven weeks, that is not the issue. The issue is to ensure any matters that arise are resolved in an amicable way." Kaliaropoulos will be replaced as CEO from Oct. 1, becoming CEO of strategic assignments. The stake buyers, who will get management control, have yet to say how they will fund the deal. Batelco's cash balance is $231 million, according to its second-quarter statement. "When we conclude the deal we will reveal how we will fund everything," said Kaliaropoulos. "Batelco has no debt on its balance sheet, so the ability to raise funding is not an issue." Zain Saudi's debts top $5.5 billion. Of this, $2.6 billion is an Islamic facility repayable in 2012. This is thought to be guaranteed by Zain and so likely needs refinancing for the stake sale to succeed, while Zain has also lent its affiliate about $651 million. "Getting long-term financing would be a game changer for Zain Saudi and allow it to survive, otherwise I do not know how it will fund its cash flow," said a regional telecoms analyst who asked not to be identified.
