Thursday, Jan 27, 2011
DUBAI (Zawya Dow Jones)--A Zain spokesman said Thursday he could "reconfirm" comments made by Mobile Telecommunications Co. Saudi Arabia (7030.SA), or Zain Saudi's top executive to an Arabic language TV channel a day earlier that he isn't in talks to buy out the telco's Kuwaiti parent's stake.
"The news is not true," Zain Saudi Chief Executive Officer Saad Al Barrak told CNBC Arabia news channel Wednesday in response to a media report that he was seeking to buy out the stake held by Kuwait's Mobile Telecommunications Co. (ZAIN.KW), better known as Zain.
Zain Saudi is 25%-owned by Zain, according to Zawya.com.
"We in Zain Saudi always talk to investments funds on what is called investment roadshow to encourage people to invest in the company in general. We also always talk to banks to refinance the company," Al Barrak said in the interview.
Emirates Telecommunications Co., or Etisalat, in late September offered to buy a 46% in Zain in a deal worth $11.7 billion, making it potentially one of the biggest corporate transactions of recent times in the Middle East and fueling Etisalat's regional expansion strategy.
A sticking point for the deal has been the fact that Zain and Etisalat both operate in the Saudi market. Etisalat said in November that its proposal was subject to several conditions, including the disposal of Zain's entire stake in its Zain Saudi unit. Etisalat operates Etihad Etisalat, or Mobily in Saudi Arabia.
Bahrain Telecommunications Co., or Batelco, and South Africa's MTN previously showed interest in buying a 25% stake in Zain Saudi.
-By Shereen El Gazzar, Dow Jones Newswires; +971 444 61684; Shereen.elgazzar@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
27-01-11 1038GMT
