Kuwait’s Commercial Bank swings to profit in Q2

July 28, 2010 By Leave a Comment

July 27 (Reuters) – Commercial Bank of Kuwait (CBKK.KW) (CBK) posted a 2.3 million dinars ($7.98 million) net profit for the second-quarter, compared with a net loss of 2.3 million dinars a year ago.

Net profit for the first half came in at 890,000 dinars, the country’s third biggest lender by market value said in a statement to the Kuwaiti bourse website on Tuesday. Analysts at EFG-Hermes had expected CBK to post a second quarter net profit of 1 million dinars, according to a Reuters survey. [ID:nLDE6660W0] (Reporting by Eman Goma; Editing by Dinesh Nair)

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Kuwait’s Zain may invest in MidEast-report

July 15, 2010 By Leave a Comment

July 14 (Reuters) – Kuwaiti telecom firm Zain (ZAIN.KW) is open to investing in communications and the Internet in the Middle East, its chief executive said in remarks published on Wednesday.

The state news agency KUNA quoted Nabil bin Salama as saying the company’s profits for the first half will be “good.” He did not provide any figures.

Zain sold most of its African assets to India’s Bharti Airtel (BRTI.BO) in a $9 billion deal last month. It overhauled its management in line with its new strategy to concentrate on Middle East operations. [nLDE6591RK]

Bin Salama said Zain was interested in acquiring the telecoms company it operates in Lebanon, MTC Touch, if the government decides to sell it.

(Reporting by Diana Elias; Editing by Andrew Callus)

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UPDATE 1-RESEARCH ALERT-Credit Suisse upgrades Kuwait’s Zain

July 6, 2010 By Leave a Comment

* Upgrades Zain post African assets disposal

* Says potential upside from further asset sales possible

July 5 (Reuters) – Credit Suisse upgraded Kuwaiti telecoms firm Zain (ZAIN.KW) by two notches to “outperform,” and said the market underestimates the strength of cash generation in the company’s Middle Eastern assets and potential for substantially lower group overheads post the Africa disposal.

The brokerage, which previously had an “underperform,” rating on the stock, also raised its share-price target to 1.4 dinars from 0.9 dinars.

Last month, Bharti Airtel Ltd (BRTI.BO) completed its $9 billion acquisition of the African operations from Zain in a deal that makes the Indian firm the world’s fifth biggest cellphone company by subscribers. [nSGE65802V]

“Free of financial drag and organisational overstretch in Africa, we see Zain as stronger, more clearly focused and with a newly shareholder-friendly emphasis on cash distribution,” the brokerage said. Zain’s African exit signals the possibility of wider retrenchment given shareholder focus on cash returns, Credit Suisse said, adding that it expects potential upside from further asset sales.

The brokerage said Zain could pay a 0.35 dinars-per-share 2010 dividend and still generate at least 0.1 dinars-per-share of underlying earnings.

“We expect sporadic news reports on possible M&A interest in Zain and potential dividend payments to continue,” it said.

Shares of the company were up 2 percent at 1.1 dinars at 0855 GMT.

(Reporting by Mary Meyase in Bangalore; Editing by Maju Samuel)

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Zain in talks with Etisalat to sell majority stake-paper

June 28, 2010 By Leave a Comment

June 27 (Reuters) – Kuwait’s telecoms firm Zain (ZAIN.KW) is in talks with Abu Dhabi’s Etisalat (ETEL.AD) to sell a majority stake in the group, a Kuwaiti newspaper reported on Sunday.

Financials | Telecommuncations Services

Both firms held meetings last week to discuss the potential deal, daily al-Seyassah said in an unsourced report and without providing details about the size of the stake or the price.

A Zain spokesman could not be reached for comment on the report. Etisalat spokesman was not available to comment immediately.

Earlier this month, Zain’s Chief Executive Nabeel bin Salama said the firm was not in talks to sell further assets, after it closed the sale of its African assets, excluding Sudan and Morocco, to India’s Bharti Airtel (BRTI.BO) in a $9 billion deal. [ID:nSGE6570D2] (Writing by Eman Goma; Editing by Dinesh Nair)

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India’s Bharti Airtel rises more than 3 pct

June 11, 2010 By Leave a Comment

June 10 (Reuters) – Shares in India’s Bharti Airtel rose more than 3 percent on Thursday, extending gains for the second day after the top mobile operator said on Tuesday it completed its $9 billion acquisition of Zain’s (ZAIN.KW) Africa operations.

Telecommuncations Services

On Wednesday, a top official had told Reuters that Bharti will offer affordable rates in Africa to boost usage but has no plan to launch a price war. [ID:nSGE6580JD]

The stocks was up 3.03 percent at 280.40 rupees by 0551 GMT, while the main stock index .BSESN was up 0.7 percent.

Bharti shares had closed 5.6 percent higher on Wednesday, logging their best single-day percentage-point gain in more than six months. (Reporting by Ami Shah; Editing by Unnikrishnan Nair)

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UPDATE 1-Zain, Bharti to close African deal on Tuesday-sources

June 9, 2010 By Leave a Comment

June 8 (Reuters) – Kuwait’s Zain (ZAIN.KW) and India’s Bharti Airtel (BRTI.BO) are expected to close a $9 billion deal for most of the Kuwaiti firm’s African assets on Tuesday, sources said.

Zain will receive $7.9 billion from Bharti on Tuesday before both firms make an announcement about the final closing, sources close to the deal told Reuters.

Bharti has called for a press conference in New Delhi on Tuesday at 0900 GMT, but did not provide more details. Sunil Mittal, the firm’s chairman, will attend the press conference.

In March, Zain struck a $9 billion deal selling its operations in 15 African countries, excluding Sudan and Morocco, to Bharti.

Kuwaiti daily al-Rai said in a report earlier on Tuesday, citing informed sources, that $400 million will be deposited into the Kuwaiti firm’s accounts after completing some procedures related to the transfer of Zain’s license in Gabon to Bharti.

In April, Zain said that the Gabon government has approved the sale of Zain Gabon to Bharti. [ID:nSGE63T024]

The remaining $700 million will be received by Zain a year after the closing, according to the agreement.

Zain’s shares were halted since May 30 pending the distribution of its 2009 cash dividend after its shareholders approved a cash dividend of 170 fils per share, which excludes distribution from the sale of the African units to Bharti. [ID:nLDE64Q0TG]

There are 1,000 fils to the dinar. (Reporting by Eman Goma; Editing by Thomas Atkins)

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Zain, Bharti to close African deal on Tuesday-sources

June 9, 2010 By Leave a Comment

June 8 (Reuters) – Kuwait’s Zain (ZAIN.KW) and India’s Bharti Airtel (BRTI.BO) are expected to close a $9 billion deal for most of the Kuwaiti firm’s African assets on Tuesday, sources said.

Telecommuncations Services

Zain will receive $7.9 billion from Bharti on Tuesday before both firms make an announcement about the final closing, sources close to the deal told Reuters.

In March, Zain struck a $9 billion deal selling its operations in 15 African countries, excluding Sudan and Morocco, to Bharti.

Kuwaiti daily al-Rai said in a report earlier on Tuesday, citing informed sources, that $400 million will be deposited into the Kuwaiti firm’s accounts after completing some procedures related to the transfer of Zain’s liscence in Gabon to Bharti.

The remaining $700 million will be received by Zain a year after the closing, according to the agreement. (Reporting by Eman Goma; Editing by Thomas Atkins)

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Zain has received $7.9 bln from Bharti – report

June 9, 2010 By Leave a Comment

June 8 (Reuters) – Kuwaiti telecoms firm Zain (ZAIN.KW) has received $7.9 billion from Bharti Airtel (BRTI.BO) and will announce the formal closing of its asset sale to the Indian firm, a newspaper reported on Tuesday.

Telecommuncations Services

Bharti Airtel transferred the sum to Zain’s account on Monday and a joint “final closing” announcement is expected on Tuesday, Kuwaiti daily al-Rai said in a report citing informed sources.

“We will advise the Kuwait stock exchange and all the stakeholders as and when appropriate,” a Zain spokesman told Reuters on Tuesday, declining to confirm the report.

In March, Zain struck a $9 billion deal selling its operations in 15 African countries, excluding Sudan and Morocco, to India’s Bharti.

Zain’s shares were halted since May 30 pending the distribution of its 2009 cash dividend after its shareholders approved a cash dividend of 170 fils per share, which excludes distribution from the sale of some of Zain’s African units to Bharti. [ID:nLDE64Q0TG]

There are 1,000 fils to the dinar.

(Reporting by Eman Goma; Editing by Thomas Atkins)

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Kuwait’s NBK gets cbank nod to acquire 60 pct of Boubyan

March 29, 2010 By Leave a Comment

KUWAIT, March 28 (Reuters) – National Bank of Kuwait (NBKK.KW) said it received the central bank’s approval to acquire up to 60 percent in Islamic lender Boubyan Bank (BOUK.KW).

Financials

NBK, the country’s biggest lender currently by market value, holds a 40 percent stake in Boubyan, it said in a statement on the Kuwaiti bourse website on Sunday. (Reporting by Eman Goma; Editing by Dinesh Nair)

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SEAT Exeo ST or “cheaper Audi” in the showroom

May 27, 2009 By Leave a Comment

SEAT Exeo ST or Martorell, Spain – The SEAT Exeo ST station wagon is now available in European showrooms with the entry model 75kW/192 hp starting at a basic price of 23,290 euros (31,230 dollars), some 1,300 euros more than the sedan.

Four newly developed “business packages” are aimed at the lucrative company car clientele with individual and fleet options.

Customers can choose between seven petrol engines with the top end SEAT Exeo Sport 2.0T FSI powered by a 147 kW/200 hp engine. The seven diesel-engined versions start with the Exeo 2.0 TDI with an output of 88 kW/120 hp and an average fuel consumption of 5.7 litres of diesel, according to the car maker.

The SEAT Exeo is basically a cheaper Audi with most of its parts coming from the previous A4 model with a slightly redesigned front and rear and the SEAT badge added to the front grille. (dpa)

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Detroit Electric to mass-produce car in Malaysia

April 16, 2009 By Leave a Comment

Kuala Lumpur – The Dutch firm, Detroit Electric, is planning to mass-produce the first of 40,000 electric cars in Malaysia next year, the company has announced. “We are planning to build a practical, affordable electric car”, says Detroit Electric CEO Albert Lam who has teamed up with the Malaysian manufacturer Proton.

The company plans to produce around 210,000 vehicles by 2012 with 270,000 planned for 2013 for export mainly to the European, Chinese and US markets.

The Detroit Electric will be fitted with lithium-ion-polymer batteries in two different models – the e63 and the e64. The smaller of the two vehicles will have a range of 180 kilometres on one charge and the larger vehicle a range of 320 kilometres, according to the manufacturer.

Both cars are listed with a top speed of 180 km/h and acceleration from zero to 100 km/h in eight seconds. The electric motor has an output of 150 kW linked to a four-speed gearbox.

The price will be between 19,000 and 23,000 euros (25,400 and 30,774 dollars), according to Lam. (dpa)

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Kuwait’s Zain eyes $5 bln for buys by 2011 – paper

April 14, 2009 By Leave a Comment

Wants to expand in Asia, Africa, Middle East-paper

* In talks to move into Syrian market

KUWAIT, April 12 (Reuters) – Kuwait’s Mobile Telecommunications Co (ZAIN.KW) plans to spend up to $5 billion on new acquisitions by 2011, its chief executive was quoted on Sunday as saying.

Zain wants to expand in Asia, Africa and the Middle East and is currently in talks to move into the Syrian market, Saad al-Barrak told Asharq Alawsat.

“We have earmarked until 2011 what we initially estimated at $5 billion for new acquisitions,” he told the paper.

Zain said last year it was interested in buying a controlling stake in Syria’s largest mobile phone provider, Syriatel Mobile Telecom.

“For Syria there are ongoing negotiations…and we will have a presence (there) in the near future,” Barrak said, without giving more details.

Zain, which operates in 24 countries, has been spending billions of dollars to expand abroad as competition heats up at home where VIVA, an affiliate of Saudi Telecom 7010.SE, has recently started operations.

Barrak reiterated the first and second quarters would be tough, given the global recession, but Zain still aims to hit its earlier target of a 30 percent rise in net profit in 2009.

The company was not immediately available to comment.

Earlier this month, Barrak was quoted as saying he expects first-quarter net profit to be close to its year-ago level of 73.3 million dinars. [ID:nL2233137]

In November, Barrak said Zain planned to make four to five acquisitions worth up to $4 billion before 2010. [ID:nL6289977] (Reporting by Rania El Gamal; Editing by Sam Cage)

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