Tuesday, May 07, 2013
RIYADH (Zawya Dow Jones)--Saudi's Capital Market Authority said the license of Saudi Integrated Telecommunications Co. (7050.SA) has been canceled and a committee has been formed to dissolve the financially troubled telco.
"Priority should be given to the repayment of the company's obligations to the non-institutional subscribers and shareholders," the CMA said in a brief statement posted on the Tadawul website on Tuesday. "The committee will have to finish the work in a very speedy manner in a period that does not exceed six months."
SITC has long been the center of much investor concern about its financial health. In September, it was fined 200,000 Saudi riyals ($53 million) by the CMA for violating markets laws and listing rules. SITC, according to the CMA announcement made then, also didn't inform the Communication and Information Technology Commission in writing of the lack of funds amounting to SAR2.8 billion pledged by the company's founding shareholders to meet the firm's financial requirements. This money was due to be paid in four annual installments starting June. 1, 2011 as stated in the company's financial accounts for the period of June 14. 2011 to Dec 31. 2011.
The telco came to market in 2011, selling 35 million shares to the public in an initial public offering where the remaining 65 million were taken up by SITC's founding members.
Write to Summer Said at summer.said@dowjones.com
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(END) Dow Jones Newswires
07-05-13 0856GMT
