Home / Further doubt cast on Zain sale

Further doubt cast on Zain sale

Shareholders attempt to block progress of deal as BSNL lowers bid

Further doubt cast on Zain sale
Analysts are becoming increasingly skeptical about the potential sale of a 46% stake in Zain to an Indian-Malaysian led consortium.

The possible sale of a 46% stake in Kuwait-based telecom operator Zain Group to an Indian-Malaysian led consortium was cast into further doubt yesterday after it emerged that two of Zain's shareholders had filed lawsuits to challenge the sale.

According to a report from Bloomberg, Mohammed al-Jasem of RHA Lawyers confirmed that he had filed four lawsuits on behalf of two Zain shareholder who were requesting the court to prevent a scheduled due diligence in Zain by the Indian-Malaysian group.

Some of Zain's shareholders may have been put off the deal after Indian operator Bharat Sanchar Nigam Ltd (BSNL), which is a major force in the consortium vying for the Zain stake, said it would cap its offer at $10 billion, according to India's Business Standard.

The Kharafi Group's original asking price was closer to $14 billion.

Kharafi Group, a Kuwaiti business conglomerate and a major shareholder in Zain, said in early October that it was willing to sell a majority stake in the telco.

Follow us to get the most comprehensive technology news in UAE delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.