ttabsnl94: [TTABSNL] (unknown)

Wednesday, September 9, 2009

[TTABSNL] (unknown)

Kuwait's Zain offers to sell stake to BSNL

9 Sep 2009, 0043 hrs IST, Joji Thomas Philip, ET Bureau

Text:

NEW DELHI: Bankers representing Kuwait's largest telecom operator Zain have approached BSNL urging it to pick up a significant stake in the West

Asian company, but the state-run telco seems only interested in the African operations of Zain.

"We were approached by bankers to enter into talks with Zain. It is unlikely that we will put in a bid, but we are taking a look at it because Zain has large-scale operations in Africa," said a BSNL executive requesting anonymity. The company board will take a final call, added the official who is part of the management team.

Earlier this week, media reports said that top shareholders are looking to offload a 46% stake in Zain for about $14 billion.

Its primary shareholders are Kharafi Group, one of the wealthiest families in West Asia, and Kuwait Investment Authority, the Emirate's sovereign wealth fund. It has over 70 million customers across 24 countries in West Asia and Africa.

Its operations in 16 African countries are estimated to be worth over $10 billion with 41 million users, making it one of the largest operators in that continent along with MTN, Vodafone, France Telecom and Orascom. Zain, which has invested more than $12 billion in its African operations since 2005, reported first-quarter losses in seven of its markets in the continent.

When contacted, BSNL chairman and MD Kuldeep Goyal said the telco was "open to any opportunity that allowed it to expand to overseas market," but refused to comment specifically on Zain. BSNL has cash reserves of over $10 billion.

Last week, the board cleared a proposal to place a bid for Luxembourg-based Millicom's Sri Lanka operations, for which it will compete with India's top mobile operator Bharti Airtel, UAE's Etisalat and Malaysia's Axiata, among others.

Last month, Zain CEO Saad al-Barrak told media that the company was in talks with three telcos, including one from India, to sell all or part of its African operations. It was assumed that the Indian telco was Reliance Communications. But the Anil Ambani firm on Monday said it was not interested in Zain.

Etisalat, another firm speculated to be in talks with Zain, too denied that it was in the race. Zain was earlier in talks with France's Vivendi to sell its African assets but the talks fell through in July.

regards,

Er. Santosh J. Devadiga.

CDMA MSC, Nasik

9422268970

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