Telecom giant Zain #Saudi to cut capital by $360mln to offset losses | ZAWYA MENA Edition

Telecom giant Zain Saudi to cut capital by $360mln to offset losses | ZAWYA MENA Edition:

Mobile Telecommunications Company Saudi Arabia (Zain KSA) has decided to cut its capital by nearly a quarter or 1.35 billion Saudi riyals ($360 million).

The move to reduce the capital from 5.8 billion riyals to approximately 4.5 billion is intended to write off the telecom firm’s accumulated losses, which were estimated to be at 1,444 million riyals as of June 30, 2020.

The company is 37 percent owned by Kuwait’s Zain Group. It had earlier said that it achieved “notable” financial results during the first six months of the year, with its net profit hitting 164 million riyals and revenues reaching 3,928 million.

The capital reduction, which had been recommended by the firm’s board of directors, was approved during the Extraordinary General Assembly.