GO approves capital cut to offset losses

25/04/2019 Argaam

 

Etihad Atheeb Telecommunication Co.’s (GO) shareholders have approved a 25.81 percent capital cut to SAR 350.53 million from SAR 472.5 million during the extraordinary general assembly meeting that was held on April 24, 2019, the company said in a statement on Tadawul.

 

The capital cut aims to offset accumulated losses.

 

Last month, the company said that its accumulated losses as of March13, 2019 reached SAR 243.9 million representing 51.63 percent of capital, as reported by Argaam.

 

In a separate statement, the Saudi stock exchange (Tadawul) said that fluctuation limit of Atheeb's (GO)shares will be based on a share price of SAR 7.2. 

 

They company will remain suspended due to its failure to disclose its financial statements within the specified time frame.

 

The Securities Depository Center (Edaa) will reflect the share reduction by Monday, April 29, 2019, the stock exchange added.

 

Key Figures of the Capital Reduction

Current Capital

SAR 472.5 mln

Number of shares

47.25 mln shares

Reduction (%)

25.81% (1 for every 3.87 shares)

New Capital

SAR 350.53 mln

New number of shares

35.05 mln shares

Method

Canceling 12.2 mln shares

Record date

April 24, 2019

Driver

To offset 50% of accumulated losses (SAR 121.97 mln)

 

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