Kuwait's Securities shows interest in Zain stake

Kuwait's Securities Group Co said on Sunday that it was studying the possibility of buying part or all of the Kuwait Investment Authority's stake in telecoms firm Zain.

Bader Al Saad, managing director of the KIA, the country's sovereign wealth fund, said last week that the KIA might consider selling its 24.6 per cent stake in Zain though the fund is not party to talks between shareholders the telecom firm and potential buyers.

"The Securities Group is undertaking the necessary studies or reviews to present an offer to buy a part or all of KIA's stake in Zain," Securities Group said in a notice in local newspaper Al Rai on Sunday.

The firm did not say how much it will pay for the shares, only adding that it supports KIA's earlier statement that 2 dinars per share is a good price.

Last month, Kuwaiti conglomerate Kharafi Group said it had agreed to sell 46 per cent of Zain to a consortium led by India's Vavasi Group and including telecoms firms Bharat Sanchar Nigam and Mahanagar Telephone Nigam, and Malaysian billionaire Syed Mokhtar Al Bukhary.

KIA's Saad said the 2 dinars per share that Kharafi said the buying consortium had offered to pay was a "good price".

In July, the KIA sold its 19.8 per cent stake in Islamic lender Boubyan in an auction in which Securities Group and National Bank of Kuwait competed.