KUWAIT CITY - Shareholders in Kuwait's Mobile Telecommunications Co (Zain) gave their approval on Monday to a 125 percent increase in the group's capital to fund future global expansion.
Zain will raise about 1.2 billion dinars (4.4 billion dollars) by selling 1.42 billion shares to its current shareholders at 0.85 dinars (3.1 dollars) per share.
Zain stocks closed trading on Monday at 15 dollars a share.
The group will also allocate some 950 million shares or 50 percent of the capital as a grant to shareholders.
The process will increase Zain's capital from 189.5 million dinars (697 million dollars) to 428 million dinars (1.57 billion dollars).
Chairman Asaad al-Banwan said the funds will assist the group in its "future acquisitions" on the basis of a plan set by the board of directors. He said the sale of shares will take place in May.
Zain, the largest capitalised company on the Kuwait Stock Market, made a number of multi-billion dollar acquisitions in Africa and the Middle East in the past few years.
It acquired Dutch firm CelTel, which operates in 13 African nations, at a cost of around 3.4 billion dollars.
CelTel later bought majority stakes in Madagascar's Madacom, Nigeria's Vmobile and Westel in Ghana.
Zain also completed the acquisition of Sudan's premier mobile company Mobitel in a deal worth 1.332 billion dollars.
Also last year, the company won the third mobile licence in Saudi Arabia for 6.1 billion dollars. It plans to begin operation after several months.
It also acquired the licence of Iraqna from Egypt's Orascom for 1.2 billion dollars which enables Zain to offer mobile services throughout Iraq for 15 years.
Banwan said the group is currently studying the possibility of listing on one of the international stock markets, but provided no details.
CEO Saad al-Barrak said the company is also exploring several investment opportunities in Syria, Turkey and Yemen, in addition to Africa where the company already operates in 15 countries.
"Our ambition is to become one of the top 10 global telecom companies by 2011," he said.
Zain profits last year reached a record 320.45 million dinars (1.174 billion dollars). It has 42 million subscribers in 22 countries.
Its capitalisation reached 28.4 billion dollars on Monday.
Zain, in which the state owns a 24.6 percent stake, also operates in Kuwait, Jordan, Bahrain, Iraq and Lebanon.
Zain is one of two mobile operators in Kuwait, along with Wataniya. A third company is under establishment.
oh/la/kir
03/10/2008 11:46 GMT