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Saudi Go's board OKs capital reduction

Saudi Go's board OKs capital reduction
Go noted that the financial advisor will be hired in the coming period
ATHEEB TELECOM
7040
9.98% 62.80 5.70

Riyadh – Mubasher: Etihad Atheeb Telecommunication’s (Go) board of directors on Wednesday approved reducing capital by 25% to reach SAR 472.5 million, from SAR 630 million.

Go’s shares will decrease to 47.25 million, from 63 million shares, according to a statement on Thursday to the Saudi Stock Exchange (Tadawul).

The Saudi Arabia-based firm attributed the capital reduction decision to amortise accumulated losses that reached SAR 316.7 million, representing 50.27% of its capital.

Accumulated losses resulted from the fall of revenues and an increase in interconnection costs.

Capital reduction will not impact on the Go’s commitments, the company said. 

This decision will be subject to regulatory authorities' and extraordinary general meeting's (EGM) approvals.

If the shareholders approved trimming the capital, it will be implemented by the end of trading day that followed EGM’s meeting date due to be specified later.

Go noted that the financial advisor will be hired in the coming period, while capital reduction’s request will be submitted to the Capital Market Authority (CMA).

Previously, the telecommunications provider’s accumulated losses exceeded 50% of its capital.

By 10:46 am KSA time, Go's stock increased 0.16% to SAR 6.35.