Copying and distributing are prohibited without permission of the publisher
Saudi Arabia approves Zain restructuring
29 May 2012
Financial regulator approves reduction of Zain Saudi Arabia’s paid-up capital by $2.4bn
Zain’s Saudi Arabian operation has received an approval for its capital restructuring plan from the country’s Capital Market Authority, reported local media.
Prince Hussam Bin Saud Bin Abdul Aziz, chairman of the Zain unit, told Saudi Gazette: “This is an important step in a new era for Zain KSA. Our business is performing in line with expectations, we have a new management team, we are introducing a new strategy with demonstrable support from our largest shareholder, Mobile Telecommunications Company (Zain Group).”
The paid-up capital of Zain Saudi Arabia will reduce from $3.7 billion to $1.28 billion. The move will be followed by an increase in capital of $1.6 billion, funded through a a rights issue, under which shareholders will subscribe for new shares in the company for cash or by capitalising certain subordinated loans made by some of the founding shareholders in the company, reported Saudi Gazette, citing a company statement.
The cash income will largely be used to reduce the company’s current liabilities and expand 4G LTE network and reduce bank debt, added the statement. GTB
More from GTB
Saudi Telecom seeks MVNO partner 07 Mar 2012
Saudi regulator cracks down on SIM law 09 Feb 2012
Zain Jordan to improve internet coverage 23 Jan 2012
Ericsson to upgrade Zain Iraq's network 24 Nov 2011