Zain Saudi Arabia to boost capital in June

18 May 2010

(MENAFN) The Chief Executive Officer at Zain Saudi Arabia said that the mobile phone operator is finalizing plans to increase capital in a month’s time, after the firm missed payments to creditors in 2009, Reuters reported.

Zain Saudi Arabia, which is 25 percent owned by Kuwait’s Zain, said in January it was in talks with creditors after missing some commitments last year on a $2.5 billion Islamic loan.

In February, the CEO said the company will seek a 30 percent capital increase in 2010, half of which would be through converting debt worth $577 million into equity and the other half from founding shareholders.

Zain Saudi started operations in late 2008 after paying with other investors $6 billion to win the third Saudi mobile license. It competes with larger rivals Saudi Telecom and Mobily.

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