Saudi Arabia’s Capital Market Authority (CMA) has once again halted trading in Etihad Etisalat’s (Mobily’s) shares, until it gets a response from the telecoms operator on the likely impact on its earnings from an initial regulatory report examining accounting irregularities. For its part, Mobily announced that it will disclose the required information ‘immediately upon concluding such study’.
As previously reported by CommsUpdate, in November 2014 the CMA launched an investigation into Mobily after the company restated its earnings for an 18 month period due to ‘accounting error’. In March 2015 the CMA assigned a specialised team to review Mobily’s newly restated financial statements and all other related documents, following an investigation to determine any violations by the company towards the bourse rules. Following a brief suspension of trading of its shares in order to ‘give the company time to announce a clarification related to one of its businesses’, the CMA referred a case of suspected insider trading at the telco to public prosecutors.