Saudi Arabia’s capital market authority (CMA) has approved mobile operator Zain KSA’s capital restructuring plan and SR6bn (US$1.6bn) rights issue.
The regulator said it approved a request to reduce Zain KSA’s capital from SR14bn (US$3.7bn)…
Saudi Arabia’s capital market authority (CMA) has approved mobile operator Zain KSA’s capital restructuring plan and SR6bn (US$1.6bn) rights issue.
The regulator said it approved a request to reduce Zain KSA’s capital from SR14bn (US$3.7bn) to SR4.8bn (US$1.3bn) and number of shares from 1.4 billion to 480.1 million.
The CMA said in the same statement it has also approved the company’s request to subsequently increase its capital by launching a SR6bn rights issue, restricted to registered shareholders.
Both the capital restructuring and the rights issue are subject to shareholder approval at an extraordinary general assembly, the date of which is yet to be confirmed
The price and number of shares to be offered as part of the rights issue will also be determined at the assembly, the CMA stated, adding that a prospectus will then be published.
Part of the Kuwait-based Zain Group, Zain KSA said in its 2011 financial report that it “incurred net loss for the year ended 31 December 2011 and its current liabilities exceeded its current assets”.
However, the company added it believed “it will be successful in meeting its obligations in the normal course of operations and its efforts in securing the necessary funding which is conditional to the company’s capital restructuring”.
Zain KSA posted a net loss of SR1.9bn (US$506.6m) for 2011 and a net loss of SR420m (US$112m) for Q1 2012.
In April, the company announced it would refinance its SR9.75bn (US$2.6bn) murabaha facility secured in 2009.
