Etihad Atheeb names financial advisor for capital cut

Etihad Atheeb Telecommunication Co. (GO) appointed Saudi Kuwaiti Finance House (SKFH) as a financial advisor to manage its capital cut, according to a bourse filing on Tuesday.

On Jan. 23, the company’s board 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 step is intended to offset 51.63% of accumulated losses worth SAR 180.98 million by the end of September 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.

Moreover, the company will file a request to the Capital Market Authority (CMA) for approval.