After Zain finally released its detailed financial statement for its third-quarter earnings (direct link to the PDF here), the regional telecommunication analysts earned their keep by releasing updated analysis reports.
Shuaa Capital's Simon Simonian breaks down the numbers, and what this means for the potential stake sale of Zain to a consortium of Indian and Malaysian firms after the break.
state-owned Bharat Sanchar Nigam (BSNL) is likely to leave the
consortium led by Delhi-based Vavasi Group. BSNL allegedly left the consortium over disagreements on Zain's valuation and a new partner is expected to rejoin the deal by the end of the month, the paper says.
Sukuk explained
Sukuk are Sharia-compliant financial certificates issued by governments, corporates and other entities. While as an asset class they resemble conventional bonds, there are some significant differences. As interest is prohibited under Sharia, sukuk must contain an underlying transaction, for example a leaseback agreement, and the income that is paid to investors is generated by the underlying asset. Investors must also be prepared to share in both the profits and losses of an enterprise. Nevertheless, sukuk are similar to conventional bonds in that they provide regular payments, and are considered less risky than equities. Most investors would not buy sukuk directly due to high minimum subscriptions, but invest via funds.
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Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
