Mubasher: Mobile Telecommunications’ (Zain) sale of treasury stocks is likely to boost the group’s strategic operating flexibility, at a time when the company is working on bolstering its investments in the digital services sphere, Zain’s deputy chairman said on Sunday.
Badr Nasser Mohammad Al Kharafi welcomed Oman Telecommunications’ (Omantel) investment in the Kuwaiti telecom operator, noting that the investment represents Zain’s attractiveness, strength, and diversified portfolio.
This investment will support our efforts in the coming period, he said in a statement.
On Thursday, Zain announced selling 425.71 million treasury shares to Omantel for KWD 255 million ($845 million) or 600 fils per share.
The sold stake represents 9.84% of Zain’s issued and paid-up capital.
Should the sale be finalised, the deal will not have a financial impact on the company’s income statement but will bolster Zain’s cash liquidity and shareholders’ rights by KWD 255 million, Zain said in a bourse filing on Sunday.
The financial impact of the sale will appear in Zain’s results for the third quarter of 2017.
Last week, Kuwait’s Zain reported a slight decline in its profits by 1.5% in profits to KWD 44.06 million ($145.63 million) in the second quarter of 2017 compared to KWD 44.72 million ($147.81 million) in the same period a year ago.
At the level of the first six months of 2017, Zain’s profits edged up 0.4% to KWD 82.29 million from KWD 81.97 million in H1-16.
