Zain Saudi sets date for capital restructuring
Riyadh, June 9, 2012
Telecom operator Zain Saudi has started preparations for its key shareholders' meeting on June 25 where its capital restructuring plan will be put for vote, said Saudi Fransi Capital, the lead manager of the transaction.
At the meeting, Zain Saudi will ask shareholders to approve a multibillion dollar capital restructuring after the company won endorsement from Capital Market Authority and Ministry of Commerce and Industry for its plan.
The capital reduction will result in the company’s paid-up capital being reduced from SR14 billion ($3.7 billion) to SR4.8 billion.
The paid-up capital will be subsequently increased, said Saudi Fransi Capital and Al Rajhi Capital, who are the financial advisers to the capital restructuring plan.
The rights issue will consist of shareholders in Zain Saudi subscribing for new shares in the company for cash or by capitalising certain subordinated loans made by some of its founding shareholders.
On the elaborate arrangements made, Zain Saudi said the shareholders will be able to vote electronically in respect of the resolutions being proposed at the EGM through Tadawul using the Tadawulaty facility.
The facility is open since June 4 (three weeks before the EGM) and will run till 11am on the date of the meeting. The deadline is for all shareholders owning 20 or more shares in the Saudi telecom operator.
The company has selected the following banks for receiving applications for new shares.
They include Banque Saudi Fransi, Riyad Bank, NCB, Bank Al Jazira, Bank Al Bilad, ANB, Al Rajhi Bank, Samba, Saudi Investment Bank, Saudi Holland Bank, SABB and Al Inma Bank.-TradeArabia News Service