Saudi Telecom board proposes $8 bln capital increase

• Saudi Telecom (7010.SE) announced on Sunday that its board of directors has requested an increase in capital of $8 billion.
• The capital increase would entail the issuance of 30 billion new shares
• a 150 percent increase, with shareholders offering 1.5 new shares for each share they currently own.

Saudi Telecom (7010.SE) announced on Sunday that its board of directors has requested an increase in capital of 30 billion riyals ($8 billion) to fund growth and expansion ambitions in Saudi Arabia and the rest of the region.

The capital increase would entail the issuance of 30 billion new shares, a 150 percent increase, with shareholders offering 1.5 new shares for each share they currently own.

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The news was announced in a statement to the Saudi stock exchange.

Through its sovereign wealth fund, the Public Investment Fund, Saudi Arabia’s government owns 64 percent of the largest telecom.

Saudi Telecom stated in a separate statement that its board had suggested decreasing its dividend policy from 1 riyal $0.26) per share per quarter to 0.40 riyal ($0.10).

In response to the proposed share capital increase, the board proposed changing the three-year dividend policy, which had been in effect since the fourth quarter of last year, according to the statement.

It was said that the board would continue to evaluate increased dividend payments.

(1 dollar = 3.7513 riyals)

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