Zain launches share sale of Iraqi unit
Dubai, June 4, 2013
Kuwait telecom operator Zain will set up a holding company through which it will offer a quarter of its stake in its Iraqi unit to the public, it said on Tuesday.
Zain Iraq must float a quarter of its shares and list on the Iraq Stock Exchange (ISX) as part of its $1.25 billion licence, as were Iraq's two other national operators.
Under plans announced on Tuesday, Zain will set up a holding company, named "Khatam Communications" to hold its Iraqi operations and will offer 55.9 million shares at one dinar each in the firm. The offer period starts on June 4 and will run for 30 days, Zain said in a bourse statement.
Once the process is complete, the new holding company will get the necessary approvals to commence the initial public offering of 25 percent stake in Zain Iraq at a later time, Zain said.
Zain said it was setting up a holding company as Iraqi laws did not allow foreign-owned companies to list on the Iraq stock exchange.
The telco may be the sole seller in its Iraqi unit's IPO which could substantially cut its stake while maintaining its majority control. - Reuters