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GO’s board agrees SAR 122m capital cut to amortise losses

GO’s board agrees SAR 122m capital cut to amortise losses
The new capital will reach SAR 228.5 million
ATHEEB TELECOM
7040
-0.93% 5.35 -0.05

Riyadh – Mubasher: The board of Etihad Atheeb Telecommunication Company (GO) recommended a capital cut by 34.8% to amortise about SAR 122 million or 67.4% of the total accumulated losses.

The new capital will reach SAR 228.5 million from SAR 350.5 million, according to a bourse statement on Thursday.

Following the reduction, a total of 12.2 million shares will be cancelled; this equals one share for every 2.87 shares.

On 19 January, the telecom firm revealed that the accumulated losses reached SAR 180.98 million, representing 51.6% of the company’s capital.

Moreover, the transaction will have no material impact on the company’s liabilities.

The decision will be effective at the end of the second trading day following the extraordinary general meeting (EGM), which will approve the decision. The EGM date will be determined later on.

Any further details in this regard will be announced in a timely manner, GO added.