J.P. Morgan Cazenove has stated in a report that Saudi Zain’s proposed capital reduction will not impact the company’s market value.
The research firm added that it calculated the adjusted stock price at SAR 16.5, taking into account the current stock price of SAR 8.9.
In case of getting the approval on the capital reduction, the SAR 10.5 target price set until Dec. 15 will be theoretically adjusted to SAR 19.4, J.P. Morgan said. It remained ‘Neutral’ on the stock.
The report issuer indicated that the capital reduction is an accounting procedure, and the company has several positive points.
The Capital Market Authority (CMA) has halted trading on Mobily and Saudi Zain today, Tuesday, Dec. 2.
The market regulator said Mobily has requested referral to arbitration with regard to its due receivable amounts resulted from the service agreement signed with Saudi Zain on May 6, 2008 regarding providing services that include national roaming, site sharing, transmission links, and international traffic.
The research firm added that it calculated the adjusted stock price at SAR 16.5, taking into account the current stock price of SAR 8.9.
In case of getting the approval on the capital reduction, the SAR 10.5 target price set until Dec. 15 will be theoretically adjusted to SAR 19.4, J.P. Morgan said. It remained ‘Neutral’ on the stock.
The report issuer indicated that the capital reduction is an accounting procedure, and the company has several positive points.
The Capital Market Authority (CMA) has halted trading on Mobily and Saudi Zain today, Tuesday, Dec. 2.
The market regulator said Mobily has requested referral to arbitration with regard to its due receivable amounts resulted from the service agreement signed with Saudi Zain on May 6, 2008 regarding providing services that include national roaming, site sharing, transmission links, and international traffic.
Source:
Mubasher
