Zain KSA said it had received shareholders’ support for its capital restructuring plans.
The approval came at an extraordinary general assembly meeting (EGM) in Riyadh.
The requisite majority of Zain KSA shareholders voted in favor of the company’s plans to restructure its capital.
The capital reduction will result in the company’s paid-up capital being reduced from SR 14.0 billion to SR 4.801 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 SR 10.801 billion by way of a rights issue.
Prince Hussam bin Saud bin Abdul Aziz, chairman of Zain KSA, said: “We are very pleased with the outcome of the EGM. We have received a clear mandate for the capital restructuring.”
The prospectus for the rights issue is available through the Saudi Arabia Capital Market Authority website.
Zain KSA is providing updates and information about the transaction through a dedicated website.
Saudi Fransi Capital is the lead manager of the rights issue and Saudi Fransi Capital and Al-Rajhi Capital are the co-financial advisers.
The list of receiving banks is 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.