The proposed sale of a 46% stake in Zain remains on the table, according to the Kharafi Group, the shareholder which is looking to exit the Kuwaiti company.
The deal has been shrouded in doubt since it first came to light but Kharafi subsidiary National…
The proposed sale of a 46% stake in Zain remains on the table, according to the Kharafi Group, the shareholder which is looking to exit the Kuwaiti company.
The deal has been shrouded in doubt since it first came to light but Kharafi subsidiary National Investment Co has said that it is the economic climate in the region, which is delaying a sale. In September an Indian/Malaysian consortium led by the Vavasi Group said it was planning to buy a 46% stake in Zain for around US$13.7bn and that the deal should conclude in January.
Bankers have been highly sceptical about the consortium’s prospects of funding the deal from the outset. However, the National Investment Co has now issued the following statement to the Kuwaiti bourse: “Due to the developments that occurred over the last period in the region’s economic and financial circumstances, the procedures to finalize the sale process could take more time than previously set, but the deal still stands.”
State-owned Indian operators MTNL and BSNL have failed to confirm an interest in joining the consortium, which also features Malaysian billionaire Syed Mokhtar al-Bukhary.
The Kharafi Group is advised by BNP Paribas, while the Vavasi consortium is advised by Nomura.