Following a failed earlier attempt, Zain KSA has invited shareholders for a second extraordinary general meeting on 4 July. Shareholders will be asked to approve a capital restructuring, that will include a SAR6bn (US$1.6bn) rights issue.
At the first…
Following a failed earlier attempt, Zain KSA has invited shareholders for a second extraordinary general meeting on 4 July. Shareholders will be asked to approve a capital restructuring, that will include a SAR6bn (US$1.6bn) rights issue.
At the first meeting an insufficient number of shareholders had turned up at the EGM to achieve the quorum needed to proceed.
In late May, the Saudi telecoms regular, the CMA, had approved the company’s request to reduce its share capital from SAR14bn (US$3.73bn) to SAR4.801bn (US$1.28bn) ahead of increasing it again via the rights issue. However, both the capital reduction and rights issue also require the approval of at least 51% of shareholders.
Just 50.89% of shareholders attended the first EGM on 25 June, Zain KSA said in a statement, adding that “[t]his is not unusual, especially during the summer when many people travel outside the kingdom for their holidays”.
Eligible shareholders will be able to vote electronically via the Saudi Stock Exchange’s Tadawulaty facility.
If the quorums are achieved at the second EGM, the capital reduction will take effect before the start of the next day’s trading on the Saudi bourse, Zain KSA said.
The subscription period for the rights issue will begin about a week later and last for about seven days.
