Leading telecom operator Zain Saudi said it has won approval from its shareholders for a multibillion dollar capital restructuring at the recent extraordinary general assembly meeting held in Riyadh.

The Zain Saudi move comes after the company won endorsement from Kingdom's 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 ($3.73 billion) to SR4.80 billion. The subsequent capital increase, which was also approved at the EGM, will result in the paid-up capital of the company being increased to SR10.80 billion by way of a rights issue, said Saudi Fransi Capital, the lead manager of the rights issue.

Commenting on the success, Prince Dr Hussam bin Saud bin Abdul Aziz, the chairman of Zain Saudi said: “We are very pleased with the outcome of the EGM. We have received a clear mandate for the capital restructuring.”

Besides Saudi Fransi Capital, Al Rajhi Capital is also the co-financial advisor for the rights issue.

The list of receiving banks include Banque Saudi Fransi, Al Rajhi Bank, Alinma Bank, Bank AlBilad, The National Commercial Bank, Samba Financial Group, Saudi Hollandi Bank, Arab National Bank, Bank Aljazira, Riyad Bank, SABB and The Saudi Investment Bank.-TradeArabia News Service