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BSNL, MTNL express interest in Zain

Last Updated: Sunday, October 4, 2009 - 18:45

Kuwait: Bharat Sanchar Nigam Ltd and
Mahanagar Telephone Nigam Ltd have expressed interest in
participating in the acquisition of a majority stake in Zain,
Kuwait`s biggest phone company, a Khorafi Group executive said on Sunday.

Khorafi received an "official letter" addressed to Vavasi
Group stating that Bharat Sanchar and Mahanagar are interested
in partnering in the proposed purchase of 46 per cent of
Zain`s shares, Vice Chairman Bader al-Khorafi said in a faxed

Khorafi Group, one of Zain`s largest shareholders, last
month signed a preliminary agreement with India`s Vavasi Group
and Malaysian billionaire Syed Mokhtar Al-Bukhary to sell a
majority stake in Zain.

Any participation in the purchase of a stake by Bharat
Sanchar and Mahanagar will depend on due diligence and Indian
government approval, according to the statement. The letter
"removes the doubts raised during the past period of the two
Indian telecom giants` seriousness to join the potential
buyers’ consortium," the statement added.

Khorafi Group on September 16 invited smaller
shareholders in Zain to sell their shares to gather enough
stock to sell a majority stake in the company.

All required action will be taken by Zain shareholders
"to prepare the data room for the potential buyers to start
doing their due diligence according to the pre-signed contract
with Vavasi on September 2," the Khorafi statement added.

Bureau Report

First Published: Sunday, October 4, 2009 - 18:45

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