No offers for Africa yet, Zain says

The resignation of Kuwaiti-based Zain’s chief executive, Mr Saad al-Barrak, has ignited rumours of the possible sale of Zain Africa operations.

However, Zain said it has not received any offers for its African mobile networks, despite reports that it is in talks with three major international operators.

“There are no current offers and the company will inform the bourse’s administration about any new information that may come up regarding this issue,” Zain said in a statement to Kuwait’s stock exchange.

A number of Kuwait-based media had earlier reported that France’s Vivendi, Orange-owner France Telecom and the UK’s Vodafone Group were all in talks regarding Zain’s African assets, though none of the firms involved have confirmed details.

Zain announced last July that it is looking at its options in Africa, including a possible sale of its networks there. The assets are valued as high as $12 billion.

The reports suggest that a sale may have been prompted by the resignation of CEO Dr Saad Al Barrak, who announced last week that he was stepping down from the role without giving reasons.

Mr Barrak, who is also deputy chairman of Kuwait’s largest listed company, has been with Zain since 2002 and has been the main driving force behind the firm’s massive expansions and acquisitions.

Over the past few years, Zain expanded rapidly by paying billions of dollars for huge acquisitions and has operations in 23 countries in Africa and the Middle East.

The company’s customer base has risen from around one million subscribers to about 72 million now.

The acquisitions started in 2005 with the purchase of the African assets of the Dutch Celtel for $3.5 billion.

Zain’s latest acquisitions included winning a third licence in Saudi Arabia for $6.1 billion and asset buys in Morocco.

However, the global credit crunch has forced some of the company’s main shareholders, notably the biggest private investor, Al-Khorafi Group, to offer to sell a majority stake in the firm.

Meanwhile, Zain Kenya has announced a Valentines’ offer that will see customers receive free airtime of up to Sh1, 000 after purchasing handsets.

Under the deal, customers who purchase Blackberry handsets will also enjoy a one-month free subscription.

Managing director, Mr Rene Meza said the offer, which is open to all customers, will run till the end of this month.

“As we celebrate the season of love, we are happy to introduce high quality handsets to our customers at discounted prices. The handsets come with one year warranty and will be available at all Zain centres countrywide,” said Mr. Meza.