Zain Saudi begins talks with Finance Ministry on debt conversion

Mobile Telecommunications Company Saudi Arabia (Zain Saudi) has started discussions with the Ministry of Finance to convert whole or part of the outstanding debts due to the ministry, it said in a statement to Tadawul on Monday.

The conversion of debt into shares will take place through partially underwriting of the proposed rights issues or any other means. The transaction, however, will depend on the results of the discussion and obtaining all necessary regulatory approvals.

The financial impact cannot be calculated at this time, the statement said.

In May 2018, Zain Saudi filed for regulatory approval of its planned capital decrease and rights issue after its board recommended a 38 percent capital cut to SAR 3.6 billion to write off accumulated losses of SAR 2.2 billion