Zain set to increase company’s capital by 75%

December 2, 2007

1 Min Read

KUWAIT CITY -- The Mobile Telecommunication Company K.S.C. (Zain) Board of Directors today has recommended a cash dividend of 90 fils per share and a 50% stock dividend (bonus shares) for the fiscal year that will end December 31, 2007. During the same meeting, the Group’s Board recommended to increase the company’s paid in capital by 75%. The anticipated capital increase will result in proceeds of 100 fils par value and 750 fils premium per share on the new shares to be issued.

Zain’s Chairman, Mr. Asaad Al-Banwan, said that "the recommendation to increase the company’s capital aims to further enhance the Group’s key strategy of becoming one of the leading global mobile telecommunications companies". Mr. Al-Banwan went on pointing out that "Zain has consistently gained a reputation as a frontrunner when it comes to seizing and acquiring new investment opportunities in the regional markets." Al-Banwan added "that maintaining and increasing shareholders’ equity remain a priority while the company continues to grow and expand."

Zain’s Managing Director and Deputy Chairman, Dr. Saad Al-Barrak, said: “On one hand, increasing the company’s capital will provide Zain with the liquidity that is necessary to enable it to meet its commitments to its stakeholders according to our ambitious strategies. On the other hand, this increase will play a significant role in reducing the borrowing costs of our operations in the short term and allow us to leverage for the future when the right opportunities arise.”

Zain Group

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