Logo of Etihad Atheeb Telecommunication Co.
Etihad Atheeb Telecommunication Co.'s (GO) board of directors recommended, on Oct. 10, reducing the company’s capital by 60.62% from SAR 228.53 million to SAR 89.99 million, the company said in a statement to Tadawul.
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Capital Cut Key Details |
|
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Current Capital |
SAR 228.53 mln |
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Number of Shares |
22.85 mln |
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Reduction (%) |
60.62% |
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New Capital |
SAR 89.99 mln |
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New Number of Shares |
8.99 mln |
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Method |
Writing off 13.85 mln shares (3.03 shares for every 5 shares) |
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Reason |
Restructuring the company's capital to write off the accumulated losses amounting to SAR 138.53 million |
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Date |
The second trading day after the company’s extraordinary general meeting (EGM) |
AlJazira Capital was appointed as a financial advisor to manage the capital reduction and all related procedures, the statement said, adding that there is no impact of the capital reduction on the company’s financial obligations.
The telco will announce all relevant developments in due course, including providing the capital reduction request to the Capital Market Authority (CMA).
The recommendation is pending the approval of competent authority and the EGM, the statement added.
In July, the company's board of directors decided to authorize the executive management to study ways to restructure the company’s capital. This will include capital reduction and subsequent capital increase in accordance with the company's current financial position, Argaam earlier reported.
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