Kuwait sovereign fund may sell Zain stake

KUWAIT: Kuwait Investment Authority, the country's sovereign wealth fund, may sell its 24.6 percent stake in telecoms firm Zain, according to a newspaper report on Monday.

But the fund denied it sought help to evaluaute the fair price of Zain shares, and said it would be "transparent" about any possible intention to sell.

"The Kuwait Investment Authority did not commission any party to evaluate the fair price of Zain shares ahead of selling its stake to a strategic investor," KIA said in an emailed statement.

Daily al-Qabas, citing unidentified sources, said KIA has asked several investment firms to conduct technical studies on Zain group and the fair price of its shares. The fund would then consider options to either sell its stake to a strategic investor or through an auction.

KIA's stake is currently worth about $4.5 billion, the paper said.

The mobile operator struck a deal in March to sell its operation's in 15 African countries to India's Bharti Airtel. Last week, it said it would distribute a large portion of proceeds from the $9 billion asset sale to shareholders.

In October, KIA's Managing Director Bader al-Saad said the fund might sell its Zain stake if the price is right. He had said that 2 dinars ($6.87) per share was a "good price".

Zain shares, halted on Sunday pending the distribution of its 2009 dividend, last traded at 1.34 dinars.