Mubasher: Vodafone Qatar on Tuesday announced that its board approved a restructuring plan to keep pace with the future schemes, including license extension and capital reduction.

The company received the approval of the communications regulatory authority (CRA) for extending its telecommunications networks and services licence until 2068, according to the company’s statement to the Qatar Stock Exchange (QSE).

Moreover, the extension will reduce the amortisation cost per year from QAR 403 million to approximately QAR100 million, the telecom firm added. 

The board also recommended a reduction in the company's capital from QAR 8.454 billion to QAR 4.227 billion through cutting the nominal value of its shares from QAR 10 per share to QAR 5 per share.  

This move is intended to address Vodafone Qatar's accumulated loss, which to date stands at QAR 4.272 billion, largely driven by the licence's amortisation costs, the statement showed.

Moreover, the board has agreed to continue its long-term partnership with Vodafone Group Plc by nodding to a five-year technical support agreement with an option to extend, which will provide Vodafone Qatar with an access to all services and support it currently enjoys, the statement said.

On the other hand, Qatar Foundation for Education, Science and Community Development (Qatar Foundation) approved purchasing Vodafone Europe’s 51% stake in Vodafone Qatar at a total value of QAR 1.35 billion (EUR 301 million).