Atheeb Telecom recommends 25% capital cut to offset losses

18/01/2018 Argaam

 

Etihad Atheeb Telecommunications Co.’s board of directors recommended a 25 percent capital reduction to SAR 472.5 million from SAR 630 million to offset accumulated losses, the company said in a statement on Tadawul.

 

The capital cut is pending approval from the general assembly and regulator.

 

Last year, Saudi Capital Market Authority (CMA) decided that listed companies with accumulated losses above 50 percent of capital, shall face liquidation, unless they find a way to mend their financial position.

 

Key Figures of the Capital Reduction

Current Capital

SAR 630 mln

Number of shares

63 mln shares

Reduction (%)

25% (1 for every 4 shares)

New Capital

SAR 472.5 mln

New number of shares

47.25 mln shares

Method

Cancellation of 15.75 mln shares

Driver

Offsetting accumulated losses

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.