Kuwait shares slip as head of Khorafi Group dies
National Investments down 6.78% and Zain drops 3.33%
Dubai: Kuwait's benchmark index slipped yesterday after the chairman of Khorafi Group, a major shareholder in telcom firm Zain, died of a heart attack.
Nasser Mohammad Abdul Muhsin Al Khorafi passed away in the Egyptian capital Cairo. The 67-year-old headed the family-owned Khorafi Group, which had stakes in several listed firms on the Kuwaiti bourse.
The Kuwait Stock Exchange fell 0.72 per cent to to 6,342.90 with Zain falling to an eight-month low. Shares in the company fell 3.33 per cent to close at 1,160 Kuwaiti dinars, Zain's lowest finish since August 7, 2010.
Shares in National Investments, another Khorafi Group-owned company, fell 6.78 per cent to 275 fils. Shares in National Bank of Kuwait closed flat at 1,200 Kuwaiti dinars; Al Khorafi was on the lender's board and the group had a stake in the bank.
Khorafi Group was a major proponent of a proposed $12 billion (Dh44 billion) stake sale in Zain to etisalat, the UAE's largest telecommunications provider by market value.
The deal fell apart in March after etisalat pulled out, citing difficulties with Zain's divided board, extended due diligence and regional unrest.
"The general view is that Al Khorafi was very important to Kuwait as he was the main driver behind the Khorafi Group; he was a key figure in the market," said Irfan Ellam, vice-president of Equity Research at Dubai-based investment bank Al Mal Capital.
"We have already seen an initial reaction to his death [on the markets]. However, I do not think Zain will change its strategy; the company will continue to sell its assets in order to raise cash including the sale of its Saudi operations to Kingdom Holding and Batelco Group," he added.
Forbes magazine placed him among the wealthiest businessmen in the Arab world. He was ranked 77 on the world's list of billionaires in 2011 with an estimated wealth of $10.4 billion.
He is the brother of Jasem Al Khorafi, who has been the speaker of Kuwait's parliament since 1999.
His empire spanned sectors including construction, manufacturing and retail and had investments in Kuwait's leading financial institutions and listed firms.
