Zain Saudi plans share capital reduction and rights issue

28 May 2012

The Saudi Arabian cellular operator Zain Saudi has received the regulator’s go-ahead for a planned multi-billion dollar capital restructuring. The firm will ask shareholders to approve a plan under which it will reduce its issued share capital to SAR4.8 billion (USD1.28 billion) from SAR14 billion, before launching a SAR6 billion rights issue, Reuters reports. The share capital reduction is required for all firms where total losses exceed share capital; accumulated losses at Zain Saudi stood at SAR10.1 billion at the end of March 2012. The operator plans to use the proceeds from the rights issue to ease its debts.

Saudi Arabia, Zain Saudi Arabia