Zain wants to keep majority control of Bahrain unit after IPO

2 Dec 2013

Kuwaiti telecoms giant Zain Group intends to retain majority control of its Bahraini subsidiary after the unit’s initial public offering (IPO), Reuters reports. Speaking on the sidelines of a conference in Dubai, Zain CEO Scott Gegenheimer said that the matter is yet to be decided, commenting: ‘We are still having a discussion as to whether it will be [a] primary or secondary [listing] and what the dilution factor will be’.

As previously reported by TeleGeography’s CommsUpdate, Zain Bahrain must complete an initial public offering (IPO) of 15% of its shares on the local stock market by the end of December to comply with its licence terms. Zain Group holds a 56.25% stake in its Bahraini unit, while minority shareholders include Zain Bahrain’s chairman, Sheikh Ahmed bin Ali Abdulla al-Khalifa (16.3%), Vodafone Group (6.1%) and a government pension fund (4.7%). It is unclear whether Zain Group’s ownership stake will be reduced below 50% via the IPO, which would result from shareholders selling shares on a proportional basis. However, Gegenheimer said: ‘We prefer not to go below 50%, because we want to make sure we [retain] a controlling interest.’

Further, the executive revealed that the company is still aiming to fulfil the licence requirements and launch the IPO by year-end: ‘Procedure-wise, we have most of the clearances we need. We have appointed the lawyers, investment bankers, underwriters, so most of the work is already done.’

Bahrain, Vodafone Group, Zain Bahrain, Zain Group,

Subscribe

Subscribe to CommsUpdate to get the day’s top telecom headlines delivered to your email.

Subscribe to CommsUpdate

Feedback

Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share