Zain Saudi Arabia presents capital restructuring plan to shareholders

22 August 2010

Zain Saudi Arabia has proposed a plan to its shareholders to reduce capital by almost half to cover accumulated losses, and later launch a rights issue to raise it by nearly 60%, Reuters has reported. The board invited shareholders to vote for a proposal to cancel shares worth 47.6% of its total SR14bn ($3.7bn), the company said. Zain Saudi's accumulated losses reached $1.78bn by end-June 2010. If shareholders approve the capital reduction, the board will invite them to vote for a rights issue for 438.3 million shares to raise the new paid-up capital to SR11.7bn, Zain said.

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