Zain raises its stake in Saudi operation

Parent company throws its weight behind Zain Saudi Arabia's rights issue
Zain Group came to the rescure when its Saudi operation met with a lacklustre response to its recent rights issue.
Zain Group came to the rescure when its Saudi operation met with a lacklustre response to its recent rights issue.

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Kuwait’s Zain has raised its stake in its KSA unit, Zain Saudi Arabia by oversubscribing to the affiliate's $1.6 billion rights issue following a lacklustre response from other shareholders, according to a report from Reuters. Zain raised its stake in the Saudi unit to 37% from 25%.

Zain Saudi Arabia was the third entrant into KSA’s mobile sector and competes with STC and Mobily.

The telco, which is yet to make a profit, said last week that it had successfully restructured its capital after completing the rights issue.

Zain Saudi Arabia increased its revenues to SR 1.522 billion ($406m) in Q1 2012, a rise of 3% on the same period in 2011, and cut its losses by 21%.

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