Etihad Atheeb's executive management authorized to study capital restructuring

Logo of Etihad Atheeb Telecommunication Co.

Etihad Atheeb Telecommunication Co. (GO) announced the board of directors’ decision 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, the telecom provider said in a bourse filing.

The authorization also includes the appointment of financial and legal advisors as well as presenting to the board a future plan on how to increase the financial solvency of the company, strategic expansion, and improving operational and financial performance.

The decision aims to reduce the company’s accumulated losses, amounting to SAR 116.7 million at the end of the fiscal year on March 3, 2021, equivalent to 51.10% of the capital, valued at SAR 228.5 million at the end of the same period.

The company will announce any material developments, including but not limited to the percentage of capital reduction, date of reduction, and capital increase percentage, in due course as stipulated in the laws and regulations.

According to the data compiled by Argaam, the company made a number of adjustments to its capital since its listing in the market in 2009, bringing its current capital to SAR 228.53 million, as shown in the following table: