Zain KSA plans to stage a multi-billion dollar capital restructuring following the failure of a plan to sell a 25% stake in the company to a consortium led by Batelco and Kingdom Holding Company, according to Reuters.
The loss-making telco, which has accumulated debts of about $2.3 billion since its launch in 2008, must cut its capital to comply with Saudi Arabia’s bourse rules, the report added.
"We expect (to) achieve high growth levels and turn into profit as soon as the period for capital restructuring is completed, which we expect to speed up after the failure of the deal to sell Zain Kuwait's share," Zain KSA’s chairman, Prince Hussam bin Saud, told Reuters via email.
According to Reuters, Zain KSA's board had proposed to restructure its capital in August 2010 and in February said it would ask shareholders to approve slashing its capital by 55% to SAR6.3 billion ($1.68 billion).
The telco said it would then issue SAR4.4 billion of new shares, but the plan was delayed owing to the plans to sell a stake in the company.