Zain scraps ownership cap, in Africa sale talks
(Adds detail, background, stock performance)
KUWAIT Aug 31 (Reuters) - Kuwait's largest telecoms company, Zain (ZAIN.KW), whose shareholders voted to lift a cap restricting ownership on Monday, is in talks to sell a stake in its African operations, its chief executive said.
Zain is in talks with a number of partners concerning its African assets and "all scenarios are possible", Saad al-Barrak said after an extraordinary shareholder meeting.
"There is a demand (for) African assets beyond what we expected. There are a number of partners interested and we are still in preliminary talks," he told reporters.
Barrak was quoted by a local newspaper earlier this month as saying Zain was in talks with three major telecoms firms, including one from India.
Asked if this report is correct, he said: "I think that's correct to a far degree." He declined to name any firm.
Indian company Reliance Communications (RLCM.BO) has started talks to buy Zain's African operations, two banking sources told Reuters earlier this month. [nDEL477805]
Zain, in the middle of a strategic review and which is being advised by UBS, said on July 8 it was reviewing a possible sale of African operations. [nL834805] Its shareholders approved to remove a cap on share ownership at an extraordinary meeting on Monday, amid speculation this would pave the way for selling a large stake in the Kuwaiti group to a foreign investor. [nLV148878]
Barrak said Zain Group was not in talks to sell a stake in the entire company, while chairman Assad al-Banwan told shareholders on Monday the company had not received any offers.
"We as Zain company have no requests to buy Zain, I didn't get anything official," Banwan said.
Zain's shares have risen more than 20 percent since the start of August when talk of a sale first came to light. Its stock closed flat on Monday at 1.52 dinars.
(Reporting by Rania El Gamal; Editing by John Stonestreet and Dan Lalor)
((rania.elgamal@reuters.com; +965 224 089 45; Reuters Messaging:rania.elgamal.reuters.com@reuters.net)) Keywords: ZAIN/
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