Capital Reduction
Mobile Telecommunications Company Saudi Arabia (Zain) has announced that the company held its extraordinary general assembly meeting in the Media Center of Tadawul, King Fahd St., Taawuniya Towers (Northern Tower), Riyadh on 25-02-2015 corresponding to 06-05-1436 at 16:30. All resolutions of the meeting are as follows:
Resolution 1: Approve of the Board of directors recommend to reduce the company's capital as following:
1. Reduce the company's capital from SAR 10,801,000,000 to SAR 5,837,291,750.
2. With a decrease by 45.96%.
3. The number of share would also decrease from 1,080,100,000 shares to 583,729,175 shares.
4. Effective date for proposed reduction in capital is eligible to the shareholders who are registered in the shareholder's register in the Securities Depository Center (Tadawul) at the close of trading on the extraordinary general assembly day.
5. Reducing 1 share for every 2.18 share owned.
6. The principal reason for the proposed capital reduction is to write-off all of the Company accumulated losses up to 30 September 2014 representing approximately 45.96% of the Capital, as part of instituting its turnaround plan and pursuant to a recommendation by the Executive Management of the Company and its External Advisers. The Capital reduction will be carried on by the cancellation of shares to write-off all of the accumulated losses.
7. The capital reduction will not have an effect on the Company obligations.
Other resolutions passed during the meeting:
Resolution 2: Approve the amendment of article (7) of the Company bylaws to be as follows: (Article 7: The Company capital is (SAR 5,837,291,750) divided into (583,729,175) ordinary equal shares with a nominal value of (SAR 10) per share).
Resolution 3: Approve the amendment of article (8) of the Company bylaws to be as follows: (Article 8: The shareholders have subscribed in (583,729,175) shares, the value of each share is (SAR 10), for a total value of (SAR 5,837,291,750)).
Resolution 4: The ratification of the Board of Directors decision appointing Dr. Abdulaziz bin Salem Al Ruwais as Board Member in the Company replacing the resigned member Dr. Abdullah Mohammed Ba Sudan. And his membership ends with the end of the current board term.
Resolution 1: Approve of the Board of directors recommend to reduce the company's capital as following:
1. Reduce the company's capital from SAR 10,801,000,000 to SAR 5,837,291,750.
2. With a decrease by 45.96%.
3. The number of share would also decrease from 1,080,100,000 shares to 583,729,175 shares.
4. Effective date for proposed reduction in capital is eligible to the shareholders who are registered in the shareholder's register in the Securities Depository Center (Tadawul) at the close of trading on the extraordinary general assembly day.
5. Reducing 1 share for every 2.18 share owned.
6. The principal reason for the proposed capital reduction is to write-off all of the Company accumulated losses up to 30 September 2014 representing approximately 45.96% of the Capital, as part of instituting its turnaround plan and pursuant to a recommendation by the Executive Management of the Company and its External Advisers. The Capital reduction will be carried on by the cancellation of shares to write-off all of the accumulated losses.
7. The capital reduction will not have an effect on the Company obligations.
Other resolutions passed during the meeting:
Resolution 2: Approve the amendment of article (7) of the Company bylaws to be as follows: (Article 7: The Company capital is (SAR 5,837,291,750) divided into (583,729,175) ordinary equal shares with a nominal value of (SAR 10) per share).
Resolution 3: Approve the amendment of article (8) of the Company bylaws to be as follows: (Article 8: The shareholders have subscribed in (583,729,175) shares, the value of each share is (SAR 10), for a total value of (SAR 5,837,291,750)).
Resolution 4: The ratification of the Board of Directors decision appointing Dr. Abdulaziz bin Salem Al Ruwais as Board Member in the Company replacing the resigned member Dr. Abdullah Mohammed Ba Sudan. And his membership ends with the end of the current board term.
