CMA approves GO Telecom’s capital cut proposal

8 Mar 2017

Saudi Arabia’s Capital Market Authority (CMA) has approved Etihad Atheeb’s (GO Telecom’s) request to reduce its capital by 60% percent to offset losses. Last month, the company’s board of directors proposed cutting the company’s capital to SAR630 million (USD167 million) from roughly SAR1.6 billion by cancelling 94.5 million shares. The company blamed its accumulating losses, which have exceeded its capital, on the use of outdated technologies – such as WiMAX – in the past few years. The capital reduction will not have an impact on GO Telecom’s liabilities, the telco added.

Saudi Arabia, Etihad Atheeb (GO Telecom)