Zain's shareholders on Tuesday approved a $3 billion windfall payout for 2010 following the Kuwaiti telco's $9 billion sale of its African assets to India's Bharti Airtel.

Zain group also elected a new board, including a top executive from Kuwait's family conglomerate Kharafi Group, at its annual shareholder meeting on Tuesday.

The new three-year board includes Bader al-Kharafi, the vice chairman of Kharafi Group who anchored a failed attempt to sell a stake in the company, and Shaikha Al-Bahar, the Kuwait chief executive for National Bank of Kuwait.

UAE telecom firm Etisalat scrapped its $12 billion offer to buy a controlling stake in Zain last month, citing Zain's divided board, extended due diligence and regional unrest.

Etisalat, the Gulf's largest telecom firm offered last year to buy a 46 percent stake in Zain for 1.7 dinars a share from a consortium led by major Zain shareholder Kharafi Group.

Analysts expect the company to remain for sale but buyers would likely bid below the KD1.7 offer from Etisalat as they will miss the dividend payout.

The 200-fils-per-share dividend will be distributed to shareholders within the next 10 days, Zain's Chairman Asaad al-Banwan said in the meeting. Zain shares fell 1.5 percent on the Kuwaiti bourse Tuesday.-Reuters