Home Page ContentPress Releases Zain capital increase completed, US$4.49 billion raised

Zain capital increase completed, US$4.49 billion raised

by david.nunes
39711Zain Group

Zain capital increase completed, US$4.49 billion raised

Largest ever capital raising in Kuwait’s history sees 99% of shareholders subscribe Kuwait, September 20, 2008 Zain Group, the leading mobile telecom operator in the Middle East and Africa, announces the successful completion of its capital increase raising US$4.49 billion (KWD1.2 billion) with 99% of all shareholders subscribing. The number of subscribed shares exceeded 1.4 billion, bringing the total number of Zain shares to 4.28 billion with total shareholders’ equity reaching US$6.42 billion. The amount raised is unprecedented in Kuwaiti’s history exceeding all expectations, given the gloomy trends that have recently dominated local and international markets and resulted in sharp declines in the prices of oil as well as significant collapses in the financial markets worldwide. “The successful completion of the largest capital increase in the history of Kuwait is an unanimous vote of confidence by our shareholders in Zain’s management team, the performance to date and in our profitable expansion strategy aiming to be a top-ten global mobile operator by 2011,” said Zain’s Chief Executive Officer Dr Saad Al Barrak, adding that “the proceeds of this capital increase will be used to finance future strategic expansion plans and meet financial commitments.” Zain has managed to achieve unprecedented leaps in the global mobile telecommunications sector over the past 5 years to be now present in 22 countries on two continents serving over 50 million active customers. Every Zain shareholder of record on 10 March 2008, the date the company held its ordinary and extraordinary General Assembly Meeting was eligible to subscribe to a number of capital increase shares equal to 75% of the total number of shares they held on this date. The capital increase subscription price was 850 fils (approximately US$3.20) per share i.e. a par value of 100 fils per share plus a premium of 750 fils. The subscription period commenced August 17 and closed on September 18, 2008. “All the Group’s financial indicators are now geared up to witness exponential growth on the back of Zain’s huge investments in expansion projects in many of the Middle East and African markets in which we operate. We expect these investments to bring about substantial increases in the Group’s future revenues and net profits” commented Dr Al Barrak. The National Bank of Kuwait (NBK) through its local and international branches acted as the receiving bank for the capital increase. Commending the role the bank played in this successful capital raising, Dr Al Barrak said “NBK has always been our partner ever since we took our first expansionary step in Jordan way back in 2003. It has successfully managed several of Zain’s acquisition transactions to date and exceptionally managed this and Zain’s previous capital increase back in November 2005.” ENDS About Zain Zain is a leading emerging markets player in the field of telecommunications aiming to become one of the top ten mobile operators in the world by 2011. Zain was established in 1983 in Kuwait as the region’s first mobile operator. Since 2003, it has grown significantly becoming the 4th largest mobile network in the world in terms of geographic presence with a footprint in 22 countries spread across the Middle East and Africa providing mobile voice and data services to over 50.74 million active customers (as at 30 June 2008). Zain operates in the following countries: Bahrain, Burkina Faso, Chad, the Republic of the Congo, the Democratic Republic of the Congo, Gabon, Iraq, Jordan, Kenya, Kuwait, Malawi, Madagascar, Niger, Nigeria, Saudi Arabia, Sierra Leone, Sudan, Tanzania, Uganda and Zambia. In Lebanon, the company manages the network on behalf of the government operating as mtc-touch. The company’s mobile operations in Ghana will begin by the end of 2008. The Zain brand is wholly owned by Mobile Telecommunications Company KSC, which is listed on the Kuwait Stock Exchange (Stock ticker: ZAIN). The company had a market capitalization of over US$ 27.5 billion on 18 September, 2008. For more, please visit www.zain.com or email info@zain.com

Related Articles

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More