Its official! The National Investments Co. (NIC) just informed the Kuwait 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 KSE:
“Kuwait Stock Exchange (KSE) announces that the NIC has been informed that a client of one of the funds under management (Al Khair National for Stocks & Real Estate Co.) is on the verge of selling a 46% stake in Zain for a price of KD 2/share inclusive of all commissions. Moreover, NIC will inform the KSE of any updates.”
For clarification purposes, please note that Al Khair National for Stocks & Real Estate Co. is a private company owned by Al-Kharafi family. In addition to various stakes in listed companies, it directly owns 11.05% of Zain and 68.6% of NIC (as of Sept. 7th).
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Loading ...Tags: Abu Dhabi Investment Authority, ADIA, ADIA buys Zain, Al Khair Kharafi, Al-Kharafi, Bharti, Consortium sells Zain majority stake, Etisalat, GCC, Indian Reliancce, Kharafi sells zain stake, KIA, Kuwait, Kuwait Investment Authority, National Investment Company, NIC, UAE, Zain, Zain Africa, Zain Africa Sale, Zain Kuwait, Zain Majority Sale, Zain sale
So now should we follow this saying: buy on the rumor and sell on the news?
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Adel Reply:
September 7th, 2009 at 1:16 pm
Exactly! Buy the rumor, sell the fact.
For details on why minority holders should sell, please refer this article:
http://www.alphadinar.com/2009/08/23/zain-minority-shareholders-sell-sell-sell/
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Busy day for the region today!
http://ftalphaville.ft.com/blog/2009/09/07/70246/mideast-swf-powers-into-chips-as-temasek-exits/
[Reply]
Adel Reply:
September 7th, 2009 at 1:17 pm
The region is on fire or shall I say ADIA is.
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Inshalla a year and a half from now we’ll see how good this deal was, and for who!
ADIA and sovereign others are “rushing” into risk.
Either the Kharafis will buy back this company at half today’s price within 2-3 years or the Kharafi’s are struggling a la Saad and Gosaibi!
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from what i hear, they say the Kharafi’s are in trouble in their debt repayment
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It will be interesting to see how the deal unfolds. How are Al-Kharafi going to deal with minority shareholders? There is special attention especially since MP Al-Saraawi raised these issues in a statement thru Al-Jareeda newspaper.
Mr. Saraawi called on the Minister of Commerce and the Director of the Stock Exchange to carry out their functions in order to ensure all shareholders, not only Kharafi Group, benefit from the sale.
Also, Mr. Saraawi felt that “it is imperative that the Market Committee conducts the necessary investigations to determine whether specific traders/groups benefited from any insider information about the deal. This is particularly relevant since Zain shares have been trading significantly before the announcement of the deal with its volume at times reaching 80% of the total stock market volume.”
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