Saudi Arabian carrier Zain KSA is a step closer to cutting its paid-up capital by almost 10 billion Riyals (€2.1 billion), after gaining a green light for the plan from the country’s Capital Market Authority.
Zain plans to cut its paid-up capital from 14 billion Riyals currently to 4.8 billion Riyals, and then conduct a rights issue among existing shareholders to raise 6 billion Riyals. The cash will be used to cut the operator’s current liabilities, invest in its 4G network, and reduce its debt.
“This is an important step in a new era for Zain KSA,” chairman Hussam bin Saud bin Abdul Aziz states, noting the new strategy is being introduced at the same time as a new management team. “With the support of our shareholders, we can begin to move forward with real confidence,” he adds.
The plan will be put to Zain KSA’s shareholders at a forthcoming EGM, which will be held after necessary approvals are gained from Saudi Arabia’s Ministry of Commerce and Industry.