Slow take-up for Zain Saudi's rights issue

17 Jul 2012

Reuters reports that Zain Saudi’s USD1.6 billion rights issue has so far sold only 54% of shares available. Citing the lead manager, Saudi Fransi Capital, the report indicates that if the remaining 46% of shares aren’t sold by the end of today, the parent company, Zain Group, will buy the shares. Under that scenario Zain’s shareholding in Zain Saudi would rise from 25% to 51%, forcing the Kuwaiti company to consolidate the loss-making Saudi subsidiary onto its balance sheet.

Saudi Arabia, Zain Saudi Arabia