Etihad Atheeb Reduces Company’s Capital

Etihad Atheeb Telecommunication Company (GO) announced on Monday that the Board of Directors issued a resolution to recommend to the Extraordinary General Assembly to reduce the Company’s capital.

The Board of Directors resolution recommends reducing the capital from SR228, 529,000 to SR89, 999,000, at a rate of 60.62%, restructuring the company capital to write off the accumulated losses amounting to SR138, 531,481 as at the end of August 2021, at a rate of (99.99%).

The company said in a statement on (Tadawul) that the number of shares before the reduction was 22852900 shares, while the number of shares after the reduction would be 8999900 shares.

The capital decrease includes the cancellation of (13,853,000) shares of the Company’s shares, amortizing (99.99%) of the total accumulated losses amounting to (SR138, 531,481), and shares will be canceled for every (5) shares of the issued Company’s shares.

About the impact of the capital decrease on the company’s obligations, operations or operational, financial or organizational performance of the company, it said that there is no impact of the capital reduction on its financial obligations.

The reduction will be at the end of the second trading day following the Extraordinary General Assembly in which it was decided to reduce the capital, and whose date will be determined later.

The reduction of the capital and the number of shares is conditional on the necessity of approval by the related official authorities and the extraordinary general assembly.

Aljazira Capital (AJC) has been appointed as a financial advisor to manage the Company’s capital reduction process and all related procedures.

An announcement will be made when the capital reduction application file is submitted to the Capital Market Authority for approval, in addition to any other material developments.

The Company announced on the Tadawul website on  06/07/2021  of its board of directors’ decision to recommend assigning the executive management to study ways to restructure the capital, including reducing the capital; and then raise the capital in proportion to the company’s financial position.