(MENAFN - Arab News) Mobile Telecommunications Company KSC (Zain Group), a regional telecom player operating in eight countries in the Middle East and Africa, serving over 40.3 million active customers, has increased its shareholding in Zain KSA to 37.045 percent through participation and oversubscription in Zain KSA's rights issue, which completed last week.
Zain Group, which previously owned 25 percent of the Saudi Arabian mobile operator, subscribed to its full entitlement in the Zain KSA rights issue through the conversion of 400 million of shareholder debt and oversubscribed by 346.93 million, at the issue price of SR 10 per share. Zain Group's post rights issue shareholding is now confirmed at 37.045 percent.
Zain KSA commenced operations in 2008, building on the expertise of both Zain Group and its local team. The company currently has around 7.4 million subscribers as of June 30 and a network covering 90 percent of the KSA population.
The rights issue was part of a wider capital restructuring process to improve the capital structure of Zain KSA, with the proceeds raised being used to invest in network capacity and services as well as to repay certain financial obligations.
Zain KSA's extraordinary general assembly meeting had recently approved the reduction of Zain KSA's capital from SR 14 billion to SR 4.801 billion, before increasing it by SR 6 billion through a rights issue.
Nabeel bin Salamah, CEO of Zain Group, said: "As a leading mobile telecom operator, with a commercial presence in eight markets and a leading position in five, we recognize the significant opportunity in the Kingdom, particularly in the area of mobile broadband, and are pleased to further support the
development of this business as it builds its position in this important market."