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Malaysian-Indian alliance to buy stake in Kuwait's Zain telecom

Leading investors in Kuwait's Zain telecom on Tuesday signed an agreement with a Malaysian-Indian consortium for the sale of a 46-percent stake in the emirate's largest mobile operator.

The consortium consists of Malaysia's al-Bukhari Group and India's Bharat Sanchar Nigam Ltd. (BSNL BSNL Bharat Sanchar Nigam Limited
BSNL Biosecurity and Nanoscience Laboratory
), India's largest communications service provider A Communications Service Provider or CSP is a company that transports information electronically. The term encompasses public and private companies in the wireline, wireless, Internet, cable, satellite, and managed services businesses. , Mahanagar Telephone Nigam Ltd. (BSNL) and Vavasi Group.

Bader al-Khorafi, a top executive of Kuwait's Al-Khorafi Group, the largest private shareholder in Zain, told a press conference late Tuesday that the sale would be carried out within four months.

He said the value of the sale, expected to be around 14 billion dollars, would be paid in one time in according with Kuwait Stock Exchange rules.

Kuwait's National Investments Co. is arranging the deal on behalf of the Kuwaiti investors, he said.

The company said in a statement posted on the Kuwait bourse bourse (brs), term applied to a European stock exchange. The first international bourse was established in Antwerp in the 16th cent.  website Monday that the sale was set for a price of two Kuwaiti dinars Noun 1. Kuwaiti dinar - the basic unit of money in Kuwait; equal 1,000 fils
dinar

Kuwaiti monetary unit - monetary unit in Kuwait

Kuwaiti dirham, dirham - worth one tenth of a Kuwaiti dinar; equal 100 fils
 (seven dollars) per share. Zain stocks were trading at around 1.500 dinars (5.2 dollars).

The government owns the largest stake of 24.6 percent in Kuwait's oldest mobile operator.

Zain has a paid-up capital Paid-Up Capital

The total amount of shareholder capital that has been paid in full by shareholders.

Notes:
Paid-up capital is essentially the portion of authorized stock that the company has issued and received payment for.
 of 427.5 million dinars (1.49 billion dollars), representing 4.275 billion shares.

A 46-percent stake would equal about two billion shares and at a price of two dinars a share, the deal would be worth 3.933 billion dinars (13.7 billion dollars).

The 46 percent of shares would give buyers a controlling stake in Zain since 10 percent of the shares are held by the board of directors in the form of treasury shares, which do not enjoy voting rights Voting rights

The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors.


voting rights

The type of voting and the amount of control held by the owners of a class of stock.
.

Last week, Zain shareholders abolished decades-old restrictions on ownership to enable foreign investors to take up a majority stake in the emirate's oldest mobile operator.

The company's 65 million clients are located throughout 23 countries in the Middle East and Africa. As of Tuesday, its capitalisation stands at around 23 billion dollars.

It is one of three mobile operators in Kuwait, along with National Telecommunications Co (Wataniya) and Kuwait Telecommunications Co (VIVA vi·va  
interj.
Used to express acclamation, salute, or applause.



[Italian and Spanish, (long) live, both from Latin v
).

Qatar Telecom owns a majority stake in Wataniya while VIVA is run by the Saudi Telecom Co.
Copyright 2009 AFP Asian Edition
No portion of this article can be reproduced without the express written permission from the copyright holder.
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Author:AFP
Publication:AFP Asian Edition
Date:Sep 8, 2009
Words:354
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