International law firm Clifford Chance, with its Saudi partner Al-Jadaan & Partners, has advised telecom operator Zain Saudi on a $1.69 billion rights issue, as part of the company’s broader capital restructuring. It is the largest rights issue in the Gulf in 2012.
Zain Saudi’s restructuring first involved the company reducing its share capital by $2.5 billion before immediately increasing it by $1.6 billion. It is the first time that a Saudi listed company has reduced, then immediately increased, its share capital and the transaction represents the largest rights issue in the GCC in 2012.
The Clifford Chance team was led by partner Mike Taylor, who was assisted by senior associate Nick Boyd and associate Mark Dickinson.
The Al-Jadaan & Partners team was led by partner Khalid Al-Abdulkareem, who was assisted by Clifford Chance partner Omar Rashid -- currently on secondment to Al-Jadaan -- and associate Ahmed Al Rowaili.
Proceeds from the rights issue will largely be used to clear some of Zain Saudi’s debts, according to the issue prospectus. The company has yet to make a quarterly net profit nearly four years after launching services and does not expect to pay an annual dividend before 2015, the prospectus added.
Shaheen Pasha is Middle East Regional Editor at ALB. Follow us on Twitter: @ALB_TheBrief.
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