BSNL, MTNL express interest in Zain
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Last Updated: Sunday, October 04, 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 statement.

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 04, 2009, 18:45

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