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 "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, "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."
Al-Barrak went on to explain that increasing the company's capital will have a very positive impact on the Group's future profit levels especially that Zain has recently carried out several large and significant expansions of operations in strategic markets in the Middle East and Africa. Now that Zain has a footprint in 22 countries and a subscriber base of over 43m, the recommended capital increase will certainly bolster the Group's ambitions of becoming one of the top-10 telecom companies in the world by 2011.
All the above-mentioned recommendations are subject to the approval of the company's ordinary and extraordinary general assembly meetings of the shareholders as well as statutory and regulatory approvals.
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Zain set to increase company's capital by 75%
- Kuwait: Monday, December 03 - 2007 at 07:36
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The Mobile Telecommunication Company K.S.C. (Zain) Board of Directors 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.
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Posted by Anne-Birte Stensgaard, Senior News EditorMonday, December 03 - 2007 at 07:36 UAE local time (GMT+4)
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About Zain Group
Zain (formerly MTC) is a leading emerging markets player in the field of mobile telecommunications. The company was established in 1983 in Kuwait as the region's first mobile operator and since the initiation of its "3x3x3" profitable expansion strategy in 2003, it has grown exponentially becoming the 4th largest telecommunications company in the world in terms of geographic presence with a footprint in 22 countries spread across the Middle East and the African continent.
As of 8 September 2007, Zain became the company's new corporate master brand name. Currently, the company is present in 7 Middle Eastern (inclusive of the Kingdom of Saudi Arabia) and 15 sub-Saharan African countries (inclusive of the recent Ghana licence acquisition on October 22, 2007) with over 13,500 employees, providing a comprehensive range of mobile voice and data services to over 36.4m active individual and business customers (as of September 30, 2007).
The company operates under the Zain brand name in Kuwait, Sudan, Jordan and Bahrain. In Iraq the company operates as mtc-atheer and in Lebanon as mtc-touch. The company plans to commence operations in the Kingdom of Saudi Arabia in the first half of 2008 under the Zain brand and with the recent award of a 15-year nationwide licence in Iraq, mtc-atheer will also be re-branded to Zain in early 2008.
In Africa, Zain operates under the Celtel brand (www.celtel.com) currently in 14 sub-Saharan African countries namely: Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Kenya, Malawi, Madagascar, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. Celtel is the most successful pan-African mobile network, offering telecommunications services to more people in Africa than any other network. The addition of Ghana will expand Celtel's presence to 15 countries.
In January 2007, the Group launched ACE-an implementation strategy to realize the target of its 3x3x3 vision of becoming a top ten global mobile operator by 2011. ACE seeks to extract superior value from existing assets through three main thrusts: Accelerating growth in Africa; Consolidating existing assets; and Expanding into adjacent markets.
The Zain brand is wholly owned by Mobile Telecommunications Company KSC and is listed on the Kuwait Stock Exchange (Stock ticker: ZAIN). The company's market capitalization was $26.7bn on 2 December, 2007.
For further information visit www.zain.com or, please contact:
Antoine Abou Khalil
Media Relations Manager
Zain (formerly MTC) is a leading emerging markets player in the field of mobile telecommunications. The company was established in 1983 in Kuwait as the region's first mobile operator and since the initiation of its "3x3x3" profitable expansion strategy in 2003, it has grown exponentially becoming the 4th largest telecommunications company in the world in terms of geographic presence with a footprint in 22 countries spread across the Middle East and the African continent.
As of 8 September 2007, Zain became the company's new corporate master brand name. Currently, the company is present in 7 Middle Eastern (inclusive of the Kingdom of Saudi Arabia) and 15 sub-Saharan African countries (inclusive of the recent Ghana licence acquisition on October 22, 2007) with over 13,500 employees, providing a comprehensive range of mobile voice and data services to over 36.4m active individual and business customers (as of September 30, 2007).
The company operates under the Zain brand name in Kuwait, Sudan, Jordan and Bahrain. In Iraq the company operates as mtc-atheer and in Lebanon as mtc-touch. The company plans to commence operations in the Kingdom of Saudi Arabia in the first half of 2008 under the Zain brand and with the recent award of a 15-year nationwide licence in Iraq, mtc-atheer will also be re-branded to Zain in early 2008.
In Africa, Zain operates under the Celtel brand (www.celtel.com) currently in 14 sub-Saharan African countries namely: Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Kenya, Malawi, Madagascar, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. Celtel is the most successful pan-African mobile network, offering telecommunications services to more people in Africa than any other network. The addition of Ghana will expand Celtel's presence to 15 countries.
In January 2007, the Group launched ACE-an implementation strategy to realize the target of its 3x3x3 vision of becoming a top ten global mobile operator by 2011. ACE seeks to extract superior value from existing assets through three main thrusts: Accelerating growth in Africa; Consolidating existing assets; and Expanding into adjacent markets.
The Zain brand is wholly owned by Mobile Telecommunications Company KSC and is listed on the Kuwait Stock Exchange (Stock ticker: ZAIN). The company's market capitalization was $26.7bn on 2 December, 2007.
For further information visit www.zain.com or, please contact:
Antoine Abou Khalil
Media Relations Manager
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