Atheeb’s accumulated losses up to 52.6% of its capital

Ehtihad Atheeb Telecommunications Company (GO), which provides homeland telephone services, said that its accumulated losses reached SAR 828m or 52.6% of its capital.
The company attributed the losses to the decline of operating revenue as a result of the decline of broadband service’s price driven by intensive competition, in addition to the increase of amortization expenses, rentals and leased circuits.

The company added that it will be subject to the Saudi Capital Market Authority (CMA)’s preannounced rules and procedures concerning listed companies with accumulated losses representing 50% or more of their capital, which in this case are:

• The company is to publish its monthly financial statements within 10 days following the end of each month.
• Reducing the accumulated losses beyond 50% of the company’s capital should be announced to public immediately.
   

In a different statement; Tadawul announced taking the following actions in response to Atheeb’s accumulated losses:

1. The company’s shares will be suspended for 2 hours starting from the opening of Tuesday; 22/7/2014’s trading session, while orders maintenance will start from 12:30. 
2. Put a yellow flag next to the company’s name on Tadawul’s website.