Etihad Atheeb approves 35% capital cut to offset losses

Etihad Atheeb Telecommunication Co. (GO) shareholders approved a 34.8% capital cut to SAR 228.53 million from SAR 350.53 million during the extraordinary general meeting (EGM) held on Feb. 27, 2020, according to a bourse statement.

The capital cut will be through writing off 12.20 million shares, in order to offset 67.41% of total accumulated losses or SAR 122 million.

In a separate statement, The Saudi Stock Exchange (Tadawul) said that the fluctuation limits for Etihad Atheeb Telecommunication Co. will be based on a share price of SAR 11.06.

The Securities Depository Center Co. (Edaa) will reflect shares reduction on investors’ portfolios, by Tuesday, March 3, 2020.

The company will remain suspended until the company announces the disclaimer of conclusion is removed.

The telecom services provider’s accumulated losses reached SAR 180.98 million as of Jan. 16, representing 51.63% of capital amounting to SAR 350.53 million. The losses were attributed to a drop in operating revenues and other income, in addition to the increase in depreciation expenses and financial fees.

On July 1, 2018, Tadawul announced suspending trading of the telecom operator’s shares, due to its failure to announce its financial statements, in addition to announcing its financial results that include a disclaimer of opinion, related to financial statements dated:

- Interim financial results for the period ending on 30-06-2019. (Three months) 

- Interim financial results for the period ending on 30-09-2019. (Six months)

- Interim financial results for the period ending on 31-12-2019. (Nine months)