Zain Raiaes Stake in Bahrain Subsidiary Ahead of Stock Market Listing
Published on: 7th May 2014
By: Ian Mansfield
Kuwait's Zain has increased its stake in its Bahrain subsidiary after buying a 6.25 percent stake from Vodafone.
Zain said that it paid USD12.5 million for the stake, which lifted its holding to 63 percent, and will enable it to retain control of the company following an imminent stock market listing.
Zain is required to list 15% of the company on the local stock market as a condition of its license, but as it owned 56.3% of the company, faces a loss of management control.
Zain Bahrain's other shareholders now include chairman Sheikh Ahmed bin Ali Abdulla al-Khalifa, with a 16.3 percent stake and a government pension fund which owns 4.7%.
Bahrain's second mobile licence was awarded to Zain in April 2003 and the network launched that December -- ending Batelco's monopoly. The company had planned to launch an IPO in 2008, only for the share sale to be abandoned.