The Kuwaiti Stock Exchange has blocked local asset management company The Securities Group (TSG) from bidding for 5% of incumbent Zain Telecom, reported Reuters.
TSG made an open offer for the free-float of shares in Zain Telecom in order to register a…
The Kuwaiti Stock Exchange has blocked local asset management company The Securities Group (TSG) from bidding for 5% of incumbent Zain Telecom, reported Reuters.
TSG made an open offer for the free-float of shares in Zain Telecom in order to register a protest at Kuwait-based Etisalat’s bid to buy 46% of the telco at the end of last week.
The asset management company has complained that Etisalat’s attempt to buy a controlling stake in Zain ignored smaller shareholders (of which it is one), as it seemed a closed transaction between Etisalat and the Kharafi Group – the office of Kuwait’s richest family and one of the largest shareholders in Zain.
The al-Kharafis own up to 20% of Zain.
In adverts placed in Kuwaiti newspapers, TSG offered small shareholders KD1.65 (E4.24) a share against Etisalat’s KD1.70 (E4.36) a share offer to the Kharafi Group.
However, the KSE rejected this offer and told Reuters that any buying or selling transaction of shares above a 5% stake in a company should take place through the stock exchange.
TSG chairman Ali al-Mousa was unavailable for comment at the time of going to press. Etisalat was unable to comment because the UAE is closed for business for a week of mourning.
The KSE declined to speak, and Zain said that it did not comment on the actions of individual shareholders.
