Etihad Atheeb Telecommunication Co.’s (GO) board of directors recommended a 34.8% capital reduction to SAR 228.53 million from SAR 350.53 million through writing off 12.20 million shares, in order to offset 67.41% of total accumulated losses, the company said in a statement on Tadawul.
|
Key Figures of the Capital Cut |
|
|
Current Capital |
SAR 350.53 mln |
|
Number of shares |
35.05 mln |
|
Capital cut percentage (%) |
34.8% (1 share for every 2.87 shares held) |
|
New Capital |
SAR 228.53 mln |
|
New number of shares |
22.85 mln |
|
Method |
Writing off 12.20 million shares |
|
Driver |
Offset 67.41% (SAR 122 mln) of total accumulated losses |
|
Record date |
The end of the second trading day after the EGM |
The step is intended to offset 51.63% of accumulated losses worth SAR 180.98 million by the end of Sept. 2019. The accumulated losses are driven by a drop in operating revenues and other income, in addition to the increase of depreciation expenses and financial fees.
The capital reduction will have no impact on the company’s liabilities, and the process is pending approval from the general assembly and regulator.
The company said it will announce the appointment of a financial advisor for the capital reduction process in due course, and will submit the request to the Capital Market Authority (CMA) for approval.
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Changes in Etihad Atheeb’s capital |
|||
|
Status |
Amendment date |
Previous capital (mln) |
New capital (mln) |
|
Capital cut |
Aug. 2011 |
1000.00 |
400.00 |
|
Capital hike (rights issue) |
April 2012 |
400.00 |
1575.00 |
|
Capital cut |
April 2017 |
1575.00 |
630.00 |
|
Capital cut |
Feb. 2018 |
630.00 |
472.50 |
|
Capital cut |
April 2019 |
472.50 |
350.53 |
|
Capital cut |
-- |
350.53 |
228.53 |
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