The largest foreign takeover of a Middle Eastern company appears to be back on track after two major Indian state-owned telecommunications companies confirmed their involvement in the acquisition of Zain.
BSNL and MTNL are expected to provide the bulk of the more than US$10 billion (Dh36.73bn) needed to complete the buyout. Both companies were linked to the purchase when it was announced, but subsequently issued statements saying they were yet to confirm their participation.
But Kuldeep Goyal, the chairman of BSNL, India's largest telecoms company, was quoted in India's Business Standard as saying the firm "has started the process of negotiations for acquisition of a controlling stake in Zain", Kuwait's largest public company.
The comment came after the Kharafi Group, Zain's second-largest shareholder and leader of the sale process, announced it had received a letter confirming BSNL's participation in the sale, and saying it would start due diligence in the coming week.
BSNL has built up more than $6bn in cash reserves, but will require clearance from its owner, the Indian government, to make a large overseas purchase. MTNL, another state-owned operator, will also participate in the acquisition, according to comments from a manager at the company published in the Indian press.
Both companies were initially announced as partners in the buying consortium, but quickly put out a statement saying no decision had been made regarding the deal. While yesterday's comments stressed that participation depended on due diligence and a valuation, they were the strongest statements yet suggesting the companies intended to take part in the deal.
And in a separate development, the chief of the Kuwait Investment Authority (KIA), Zain's largest shareholder, made his first public comments on the deal during an interview with Al Arabiya television.
Bader al Saad, the managing director of the sovereign fund, said the proposed price of 2 Kuwaiti dinars (Dh25.62) per share, valuing the 46 per cent stake at $13.7bn, was "good".
"We are not married to our investments. Whenever there is a good return on them, they are for sale," he said, according to a Reuters report.
The Kharafi Group, based in Kuwait, is estimated to control at least 20 per cent of Zain's shares, and could easily amass a controlling stake for the sale with the co-operation of the KIA, which owns about 25 per cent. But the KIA has said it was not taking part in the deal.
Last month, Kharafi invited Zain's smaller shareholders to participate in the sale, without specifying the buyer or sale price. The company said those holding less than 300,000 Zain shares, worth Dh5.2 million at yesterday's closing price, could join the sale consortium. Kharafi expects the deal to be completed by the end of January.
tgara@thenational.ae
City's slump
L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
L - Sporting, 4-1
L - Bournemouth, 2-1
L - Tottenham, 2-1
Crazy Rich Asians
Director: Jon M Chu
Starring: Constance Wu, Henry Golding, Michelle Yeon, Gemma Chan
Four stars
Company%20Profile
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COMPANY%20PROFILE
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Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
if you go
The flights Fly Dubai, Air Arabia, Emirates, Etihad, and Royal Jordanian all offer direct, three-and-a-half-hour flights from the UAE to the Jordanian capital Amman. Alternatively, from June Fly Dubai will offer a new direct service from Dubai to Aqaba in the south of the country. See the airlines’ respective sites for varying prices or search on reliable price-comparison site Skyscanner.
The trip
Jamie Lafferty was a guest of the Jordan Tourist Board. For more information on adventure tourism in Jordan see Visit Jordan. A number of new and established tour companies offer the chance to go caving, rock-climbing, canyoning, and mountaineering in Jordan. Prices vary depending on how many activities you want to do and how many days you plan to stay in the country. Among the leaders are Terhaal, who offer a two-day canyoning trip from Dh845 per person. If you really want to push your limits, contact the Stronger Team. For a more trek-focused trip, KE Adventure offers an eight-day trip from Dh5,300 per person.
Call of Duty: Black Ops 6
Developer: Treyarch, Raven Software
Publisher: Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.