GO Telecom recommends 60% capital cut to cover losses

13 Feb 2017

The management board of Etihad Atheeb (GO Telecom) has proposed cutting the company’s capital by 60% to SAR630 million (USD167 million) from roughly SAR1.6 billion, according to a statement on the Tadawul. GO Telecom will cancel 94.5 million shares from its current 157.5 million shares as it moves to cut losses, which have exceeded its capital. The company blamed its accumulating losses on the use of outdated technologies, such as WiMAX, in the past few years. The capital reduction, which is subject to regulatory approvals, will not have an impact on GO Telecom’s liabilities, the telco added.

Saudi Arabia, Etihad Atheeb (GO Telecom)