Suspects in possible Mobily violation to be investigated

Saudi Arabia’s Capital Market Authority (CMA), the kingdom’s market regulator, said on Wednesday it that it will refer suspects involved in a possible rule violation by Etihad Etisalat Co. (Mobily) to the Bureau of Investigation and Public Prosecution.

The move comes after the Wall Street Journal reported early on Wednesday that the company was looking to sell its 10,000 towers in the kingdom for as much as $2 billion in an effort to raise cash. The report was followed by a Tadawul statement by the telco saying that it was indeed studying the option.

The CMA said it has already completed procedures required for verifying violations of the capital market law and market conduct related to insider trading.

The regulator had earlier announced that it would be looking into the issue of possible insider trading of Mobily’s shares.

Last November, Mobily came under investigation by the CMA after the company restated its earnings for an 18-month period. The probe ended with the suspicion that the telco had violated one of its listing rules and two articles of capital market law.