Saudi Almarai may take USD36m impairment on Zain Saudi stake
20 Oct 2011
(MENAFN) Dairy firm Almarai’s CFO, Paul-Louis Gay, said that if shares would stay near their current levels, the company would probably take a USD36 million impairment on its stake in Zain Saudi, reported Emirates 24/7.
Gay added that Almarai owned a 2.5 percent stake in the telecoms carrier with an initial value at USD93 million, moreover, the company also lent USD29 million to Zain Saudi.
On the other hand, he also said that Zain Saudi planned to reduce its capital by 55 percent to USD1.67 billion, following which it would issue USD1.17 billion of new shares.
It is worth noting that Almarai was one of nine founding shareholders in Zain Saudi which started services three years ago.