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10-Jan-2017

Zain KSA’s invalidation of 60-day period that was ruled by arbitration panel, expired yesterday; company to pay SAR219.5mn to Mobily for site-sharing and domestic roaming services

Zain KSA’s invalidation of the judgement 60-day period, regarding its arbitration with Mobily, has expired yesterday, and the former will pay SAR219.5mn to the latter. A ruling by the arbitration panel had been announced in November 2016 stipulating that Zain KSA pay SAR219.5mn to Mobily for cSAR2.2bn national roaming services provided by Mobily in May 2008. Zain KSA had 60 days to apply to the competent court for invalidity of the adjudication. The payment will not have a negative impact on Zain KSA, as the company had fully provided for the amount. (Company announcement)   Mobily: SAR22.34 as of 09 January 2017, Rating: Neutral, TP: SAR24.53 per share, MCap: USD4,587mn, EEC AB / 7020.SE Zain KSA: SAR8.25 as of 09 January 2017, Rating: Neutral, TP: SAR6.56 per share, MCap: USD1,284mn, ZAINKSA AB / 7030.SE     

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