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Etihad Etisalat Company (Mobily) requested the referral to arbitration with regard to Mobily dues resulted from the Service Agreement signed with Zain KSA on 6 May 2008 regarding providing services that include national roaming, site sharing, transmission links, and international traffic.
Both parties have appointed their respective arbitrators, and also, appointing an umpire is under process; the company said in a filing to Tadawul today.
An amount of SAR 2.2 billion was due to Mobily as of 30 November 2013 which Mobily tried to reach an amicable settlement with Zain KSA since then.
Mobily has already formed a provision of SAR 1.1 billion against total receivables due from Zain KSA as of 30 October 2014.
According to Argaam; the price of Zain KSA’s share was down to its lowest level after Zain’s BOD recommendation of a Capital reduction based on reporting accumulated losses of 46% of the capital.
Mobily’s board decided to suspend the CEO, Khaled Al Kaf, and delegated the vice CEO, Serkan Okandan after making adjustments on the company’s net profit worth SAR 1.4bn.
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