Saudi Ministry of Finance to acquire stake in Zain

Saudi Ministry of Finance to acquire stake in Zain

The Saudi Mobile Telecommunications Company (Zain) announced on Monday 19 August 2019 entering discussions with the Saudi Ministry of Finance with the aim of converting all or part of the debts due to the Ministry into shares in the company by partly pledging to cover the tradable rights to be issued or otherwise.

Zain company said in a statement on Tadawul, that the completion of the transaction will be subject to what may result from these discussions and to the fulfillment of all necessary approvals from government and regulatory bodies such as the Communications and Information Technology Authority, the Saudi Stock Exchange (Tadawul), and the extraordinary general assembly.

Zain company said in a statement that the financial impact of this change could not be calculated at this time.

This announcement follows the announcement published on Tadawul website on October 25, 2017 regarding the recommendations of its board of directors to reduce Zain company’s capital, and then increase the capital by issuing tradable rights.