Saudi CMA approves Zain restructuring plan
28 May 2012
(MENAFN) Zain Saudi stated that it gained the approval of the Kingdom’s Capital Market Authority (CMA) for its multi-billion dollar capital restructuring plan, reported Arabian Business.
The telecoms operator said that it will ask its shareholders to back up the plan, which will slash Zain’s issued share capital from USD3.73 billion to USD1.28 billion.
It added that it will use the proceeds from its USD1.60 billion rights issue to lessen its debts, adding that its accumulated losses stand at USD2.69 billion at the current time.
It is worth noting that according to bourse rules, listed companies must reduce their capital if losses surpass 75 percent of share capital.