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Logo of Etihad Atheeb Telecommunication Co.
Etihad Atheeb Telecommunication Co. (GO) signed an agreement with TAWAL Co. to settle all balances and dues between the two parties related to the telecommunications towers sharing agreement for the period from the beginning of the dealings until Oct. 31, 2023.
In a statement to Tadawul, the telecom operator said this agreement entails that the settlement amount until Oct. 31, 2023, is SAR 48 million in favor of TAWAL, excluding taxes.
The settlement amount will be divided into transferring the ownership of the telecom towers, starting from the effective date of this settlement to the benefit of Etihad Atheeb for an amount of SAR 30 million. Paying SAR 18 million in exchange for all obligations related to the site sharing agreement.
Accordingly, the previous sites sharing agreement will be cancelled starting from the effective date of the settlement.
The agreement shall be considered void if the settlement as mentioned above is not paid during the grace period, and Etihad Atheeb will be required to pay the total amount due for the site sharing agreement, amounting to SAR 54 million, in favor of TAWAL where the sites, including all its active and passive equipment and components shall be returned to TAWAL, the statement added.
The positive financial impact of this settlement will be recorded in the company’s accounts in the third quarter ending on Dec. 31, 2023.
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