Riyadh, 26 October 2011
• Strengthening the mobile operation, combined with a planned cash investment and reduced debt levels, to create a financially stronger company
• New management team appointed to promote greater co-operation between Zain Group and Zain KSA
In order to strengthen Mobile Telecommunications Company Saudi Arabia (“Zain KSA” or the “Company”) in the long-term interests of all stakeholders, and to deliver a better service to customers through extensive network upgrades and new product offerings, His Royal Highness Prince Dr. Hussam bin Saud bin Abdul Aziz, Chairman of the Board of Directors of Zain KSA announced that the Company’s Board of Directors has recommended at its meeting today that the Company should undergo a reduction of its capital (the “Capital Reduction”) followed by a SAR 6.0 billion (US$1.6 billion) rights issue (the “Rights Issue”, and collectively the “Capital Restructuring”), subject to the consent of the Capital Market Authority (the “CMA”), the Ministry of Industry and Commerce (“MoCI”) and the approval of other relevant parties. The Capital Reduction will result in the Company’s paid-up capital being reduced from SAR 14.0 billion (approximately US$3.73 billion) to SAR 4.801 billion (approximately US$1.28 billion). The paid-up capital will be subsequently increased to SAR 10.801 billion (approximately US$2.88 billion) by way of the Rights Issue.
Commenting on the Capital Restructuring, Mr Nabeel Bin Salamah, Zain Group CEO said that, “Zain KSA stands on the threshold of an exciting new dawn in the Saudi Arabian mobile telecom sector and this capital restructuring and rights issue will strengthen the financial position and ensure the long-term viability of the Company. The relationship between Zain KSA and Zain Group will be stronger and the opportunities to achieve genuine synergies will become apparent with a new management team. Zain KSA will be transformed, allowing the company to deliver the very latest network technology and exciting broadband product offerings to all our customers.”
To read the complete press release, please click here
Issued by Zain KSA Corporate Communications Department
www.sa.zain.com
