(Updates with statement details from second paragraph.)
Oct. 26 (Bloomberg) -- Mobile Telecommunications Co. of Saudi Arabia, known as Zain Saudi Arabia, said it will ask shareholders to approve a 66 percent capital decrease to write off losses that amounted to 9.2 billion riyals ($2.5 billion).
The board recommended reducing the company’s capital to 4.8 billion riyals from 14 billion riyals by cancelling 919.9 million shares, according to an announcement to the Saudi bourse today. The company also plans a rights offer valued at 6 billion riyals following the capital decrease, it said.
Zain Saudi’s parent company Zain Group last month failed to sell a 25 percent stake in its Saudi unit to Kingdom Holding Co. and Bahrain Telecommunications Co.
Zain Saudi posted a narrowed third-quarter loss to 484 million riyals, compared with 544 million riyals a year earlier, the company said on Oct. 12. The stock has tumbled 28 percent this year.
--Editor: Peter Branton
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