Zain - increased capital

Zain given nod for $4.53b capital hike

Zain, formerly Mobile Telecommunications Co, said yesterday its has won government approval for a $4.53 billion capital hike to finance foreign expansion.

Zain shareholders approved a 75 per cent capital increase in March, to sell 1.42 billion shares at 850 fils each for a total of 1.2 billion dinars, to fund its expansion plans. There are 1,000 fils to the dinar. Zain, Kuwait's biggest mobile operator, did not give further details in a statement announcing the approval.

The firm needs government approval to raise its capital according to its 1983 inception decree.

State-owned Kuwait Investment Authority (KIA) is Zain's largest shareholder with a 24.6 percent stake, according to data on the bourse website.

Zain's Africa chief executive said the firm was keen to acquire a licence to become South Africa's fourth mobile telephone operator, which the government of the African nation said could become available in 2009.

Zain has raised $1.2 billion to finance the acquisition of Orascom Telecom's Iraqi mobile telephone unit, the lead arranger of the facility said in June.