Saudi Ministry of Finance to acquire stake in Zain

The Saudi Mobile Telecommunications Company (Zain) announcedon Monday 19 August 2019 entering discussions with the Saudi Ministry ofFinance with the aim of converting all or part of the debts due to the Ministryinto shares in the company by partly pledging to cover the tradable rights tobe issued or otherwise.

Zain company said in a statement on Tadawul, that thecompletion of the transaction will be subject to what may result from thesediscussions and to the fulfillment of all necessary approvals from governmentand regulatory bodies such as the Communications and Information TechnologyAuthority, the Saudi Stock Exchange (Tadawul), and the extraordinarygeneral assembly.

Zain company said in a statement that the financial impact of thischange could not be calculated at this time.

This announcement follows the announcement published on Tadawulwebsite on October 25, 2017 regarding the recommendations of its board ofdirectors to reduce Zain company's capital, and then increase the capital byissuing tradable rights.