‎“Almarai” sells all of its shares in Zain Saudi Arabia ‎

Almarai Company revealed that it sold 1.6 million shares, representing its entire remaining stake in Zain Saudi Arabia, for 19.8 million riyals, during the first quarter of the current year 2023, and the exit process comes after Almarai participated in the establishment of the “Zain Saudi” company in In 2008, by owning 35 million shares, representing an estimated percentage of 2.5% of the company’s shares, with a value of about 350 million riyals.

The founding shareholders, including Almarai, supported Zain to refinance loans by mortgaging their shares in favor of creditors, in addition to extending the repayment period of loans provided by the founders of the company, and the founding shareholders provided loans to Zain Saudi Arabia.

The process of selling Almarai Company’s shares in Zain began during the third quarter of 2021, when it revealed at that time the sale of 5.6 million shares of its shares in Zain Saudi Arabia for an amount of 81.1 million riyals, during the period ending on September 30, 2021, indicating the end of the mortgage. On the shares of the Zain company related to the guarantee of the loan granted in previous periods by Banque Saudi Fransi to Zain.

The second sale was in the second quarter of the year 2022, when it announced the sale of 2.3 million shares at a value of 32.9 million riyals, and the total value of Almarai selling its shares in Zain Saudi Arabia amounted to 133.8 million riyals, which is less than the investment value of 350 million riyals by 216.2. One million riyals, without counting what “Almarai” pumped into “Zain Saudi Arabia”, which reduced its capital more than once and then raised it to extinguish its accumulated losses.

Referred to as the Saudi Mobile Telecommunications Company, “Zain Saudi Arabia,” it was founded in 2008, specifically in March, with a capital of 14 billion riyals. Ten days after its incorporation, it was listed on the Saudi stock market, and the company reduced its capital more than once and then raised it again through minority rights shares until it settled at 8.99 billion riyals.

It is noteworthy that the profits of Almarai Company jumped to 636 million riyals at the end of the first quarter of this year, by 50.5% compared to the profits of the same quarter of the previous year, which were 422.5 million riyals. Compared to the same quarter of the previous year, mainly due to gains related to entering the first 10 days of the month of Ramadan in the first quarter, in addition to (one-time) support in exchange for food security measures taken by Almarai, and the amount of these gains and one-time support is 149 million riyals ( This represents a 35% growth in net profit on an annual basis).

On the other hand, Zain Saudi Arabia achieved the highest net profit in its history, during the past year 2022, with a value of 550 million riyals, an increase of 157% over the previous year. The company attributed this increase in profits to achieving the highest revenues in its history, with a value of 9.1 billion riyals, an increase of 15% over the year 2021. Note that the company has not yet announced its results during the first quarter of 2023.

“Zain Saudi Arabia” announced the recommendation of its board of directors to distribute cash dividends to shareholders for the fiscal year 2022, with a total of about 449.36 million riyals.