Published: June 7, 2012
Directors seek shareholder approval for restructuring plan.
The Saudi Arabian subsidiary of Kuwaiti mobile telecommunications group Zain is to launch a SAR6bn (US$1.6bn) rights issue.
The deal is part of the group’s capital restructuring plan, which was approved by Saudi Arabia’s Capital Market Authority at the end of May. Zain Saudi is now seeking shareholder approval for the plan, which aims to reduce its paid-up capital to SAR4.8bn from SAR14bn.
Zain Saudi has appointed Al Rajhi Bank, Banque Saudi Fransi, Albilad Investment, Alinma Bank and Saudi Hollandi Bank to underwrite the deal, according to reports.
The company is also reported to be arranging a syndicated loan worth some US$2.5bn with several local and international banks to refinance its debt.