We usually don’t post rumors until a story is confirmed, but since the rumors on Zain have been the single largest driver of the whole market, this will be an exception.
At the beginning there was talk about a strategic partner buying the African operations, then rumors that a couple of investors are interested in buying a majority stake in the mother company, Indian Bharti then UAE Etisalat; but Etisalat recently denied their interest in the acquisition and we may have finally reached the end of the Zain saga.
Today, a strong rumor emerged that the Abu Dhabi Investment Authority (ADIA) and an Indian Co. are in agreement with majority shareholders (Kharafi-led consortium) to buy a 46% stake excluding treasury shares at a deal price of USD 13.8 billion which translates into KD 2.000 per share. Zain shares closed up 5.40% at KD1.580 today. Further, Kharafi’s National Investment Co. will manage the sale. Please note that Zain has treasury shares equal to 10%. Thus, a sale of 46% is indeed absolute majority based on a float of 90%.
“The Abu Dhabi Investment Authority (ADIA) is a sovereign wealth fund owned by Abu Dhabi, United Arab Emirates. ADIA has never published how much it has in assets. As a result of this, there is some debate on how much the fund has under control. Accepted estimates have been between $650 billion to approximately $875 billion in assets.” (Wikipedia)
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Can anyone confirm this?
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According to Reuters: When asked to confirm whether shareholders were in talks to sell a stake in Zain, Saad al Barrak said “Yes.”
This is the outcome we have been expecting at Alpha Dinar.
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It is untrue. There have been recent stories about some or all of Zain’s operations being acquired by another company. These are market rumors that have been picked up and extensively circulated by the media.
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Adel Reply:
September 7th, 2009 at 4:52 am
I think it is Junaid. It was only a matter of who, and when. NIC which is Al-Kharafi’s investment vehicle is up +100% in a month’s time, Zain’s board lifts ownership limits, and Zain CEO confirmed the talks. The rumor isn’t that Zain is selling, but its majority shareholders (Kharafi) are. We are supposed to hear an official word tomorrow.
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[...] Stock Exchange (KSE) of the imminent sale of a majority share in Zain. We had posted about the rumor yesterday. Below is a translation of the clarification sent to the [...]
Reliance Communications denied rumors and undisclosed sources told Al Ittihad newspaper said that ADIA had showed no interest in buying a stake. Seriously what is going on!
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Saud Reply:
September 8th, 2009 at 8:01 pm
From what i head its Indian Bharti who first showed interest, but again you never know
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How loose are regulations in kuwait! Al Kharafi has been building up his stake in Zain directly and indirectly via subsidiaries throughout the whole “FOR SALE” period. Is the KIA’s 24% part of the 46% deal or only Alkharafi and friends..
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