Saudi government to bail out troubled Saudi Integrated’s investors, take over the company

The Saudi government will bail out the non-founding shareholders of the troubled Saudi Integrated Telecom Co and will take over the company 14 months after the Saudi bourse regulator suspended trading of its shares on concerns over its financial health and trading violations.

The government will pay investors SAR 30 a share, a SAR 5 more than the last traded price, Chief of Protocol at the Saudi royal court, Khalid al-Tuwaijri said on his twitter account, citing a royal decree by King Abdullah.

The Finance Ministry will take over the shares, he added.

Trading of SITC’s shares on the Saudi bourse was suspended on February 6, 2013 by the Capital Market Authority. In May of the same year, the company’s authorization to operate was cancelled.

The company, which offered high-speed mobile-broadband networks (long-term evolution), launched an initial public offering in 2011. 

Shares closed at SAR 24.30 before its suspension. Investors have been demanding compensation since the suspension.