Zain approves a recapitalization plan

A 66% capital reduction of Zain Company (from SAR 14bn to SAR 4.8bn) was approved in the Extraordinary general assembly meeting that was held on 4/7/2012 to absorb most of the company's losses.

The Capital reduction is to take place by cancelling one share to each 1.5219 shares.

By this procedure the number of outstanding shares will be decreased from 1,400,000,000 shares to 480,100,000.

The BOD also approved SAR 6bn rights issue at SAR 10 par value to raise the company’s capital as follows:

• SAR 3.5 as IPO for registered shareholders.
• SAR 2.5 of shareholders loans will be capitalized.