Wednesday, Oct 26, 2011
RIYADH (Zawya Dow Jones)--Mobile Telecommunications Co. Saudi Arabia (7030.SA), known as Zain Saudi Arabia, said Wednesday its board has recommended a new capital reorganization plan as it looks to wipe out accumulated losses and eventually raise fresh cash to support its expansion plans.
Under the new proposal, Zain will reduce its paid-up capital from 14 billion Saudi riyals ($3.73 billion) to SAR4.8 billion, it said in an emailed statement.
The firm will later raise the new paid-up capital to SAR10.8 billion through rights issue, it said.
The new proposal is subject to regulatory approvals and replaces two previous offers by the firm.
The company, which is 25% owned by Kuwait's Mobile Telecommunications Co. (ZAIN.KW), began operations in Saudi Arabia in March 2008.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
(END) Dow Jones Newswires
26-10-11 1712GMT
