Etihad Atheeb gets CMA's nod on capital reduction to SAR 90 mln

Etihad Atheeb logo

The Capital Market Authority (CMA) approved today the request received from Etihad Atheeb Telecommunication Co.'s (GO) to reduce its capital from SAR 228.53 million to SAR 89.99 million, thus reducing the number of shares from 22.85 million to 8.99 million shares, according to CMA's statement.

The approval is conditional on the approval of the company's extraordinary general assembly and completion of the necessary procedures in relation to the applicable regulations, CMA said.

It added that the company will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected effect of such reduction within sufficient time prior to the EGM to enable shareholders to vote on the capital decrease.

The CMA's approval of a particular company's application to reduce its capital should never be viewed as an endorsement of the feasibility of the capital decrease. The CMA's approval of a company's application to reduce its capital merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met.

The company's 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, to restructure the company's capital to write off the accumulated losses amounting to SAR 138.53 million, according to Argaam's data.