Atheeb Telecom approves capital cut to offset losses

Etihad Atheeb Telecommunications Co.’s extraordinary general assembly has approved a 25 percent capital reduction to SAR 472.5 million from SAR 630 million through the cancellation of 15.75 million shares, the company said in a statement on Tadawul.

The capital cut was recommended last month by the board to offset the company’s accumulated losses, which reached SAR 316.7 million (50.27 percent of capital) as of Dec. 31, 2017.

Shareholders of record at the extraordinary general assembly meeting and those registered at the Securities Depository Center two trading days after this date, are eligible the capital cut.

Last year, Saudi Capital Market Authority (CMA) decided that listed companies with accumulated losses above 50 percent of capital may face liquidation, unless they find a way to mend their financial position.