Etihad Atheeb recommends 34.8% capital cut to offset losses

Etihad Atheeb Telecommunication Co.’s (GO) board of directors recommended a 34.8% capital reduction to SAR 228.53 million from SAR 350.53 million through writing off 12.20 million shares, in order to offset 67.41% of total accumulated losses, the company said in a statement on Tadawul.

The step is intended to offset 51.63% of accumulated losses worth SAR 180.98 million by the end of Sept. 2019. The accumulated losses are driven by a drop in operating revenues and other income, in addition to the increase of depreciation expenses and financial fees.

The capital reduction will have no impact on the company’s liabilities, and the process is pending approval from the general assembly and regulator. 

The company said it will announce the appointment of a financial advisor for the capital reduction process in due course, and will submit the request to the Capital Market Authority (CMA) for approval.