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FINANCIAL NEWS
Saudi Mobily to buy 20 percent stake in Atheeb
01 May 2014
(MENAFN) Etihad Etisalat (Mobily) has announced its plan to buy 20 percent stake in Etihad Atheeb Telecommunications, according to Arab News.
Mobily, via wholly-owned subsidiary Bayanat Al-Oula, signed a memorandum of understanding with four of Atheeb”s founding shareholders on a purchase of a controlling interest in the firm in August.
Under the deal, Atheeb will cut its capital by canceling some shares in order to allow it to write off up to 100 percent of accumulated losses, or USD227.1 million worth at the end of 2013.
The company previously cut its capital by 60 percent in 2011 to offset accumulated losses before an earlier rights issue.
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