Shareholders in Zain have agreed to sell a 46 percent stake in the Kuwaiti-based firm to an Asian consortium that includes Indian state-owned operators MTNL and BSNL, reports the Financial Times. The Kharafi Group, one of Zain’s main shareholders, has confirmed that a KWD2 (US$6.96) per share deal has been agreed, which values the stake at US$13.7 billion and would make it one of the largest transactions ever in the Gulf region. The Kharafi Group, owned by one of the Middle East’s wealthiest families, holds an 11 percent stake in Zain but it is not clear which other shareholders are involved. “It’s considered a good opportunity to exit the investment… This deal is considered a profit for both parties,” said Bard al-Kharafi, vice-president of the Kharafi Group. He added the deal would take around four months to complete. Other members of the Asian consortium include India’s Vavasi Group and Syed Mokhtar al-Bukhary, a Malaysian billionaire.
Zain has yet to confirm the sale, though Zain Group CEO Dr Saad al-Barrak confirmed to Reuters over the weekend that its shareholders were in talks to sell a sizable stake in the group. Earlier reports had suggested that the Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund, was also involved in the deal. The KWD2 per share offer represents a 28 percent premium to Sunday’s closing price of KWD1.56 per share. An injection of capital at the group level could mean that Zain is able to shelve plans to sell-off its African mobile network businesses. Zain said in July it has received expression of interest from several parties and other operators to acquire its operations in Africa.
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