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Saudi- CMA: Mobily trading suspended over 'loss'
(MENAFN- Arab News) The Capital Market Authority (CMA) has suspended trading in Etihad Etisalat (Mobily) after the company reported losses of $243 million last year.
The suspension will run 'until Mobily discusses the reasons that led to a net loss amounting to SR913 million' after having earlier reported a preliminary net profit of SR220 million for the 12 months to December 31 the authority said in a statement.
According to Reuters Mobily's shares have fallen by 56 percent since an accounting scandal first broke in November wiping $9.1 billion from its market value.
Mobily made a loss of SR913 million in 2014 after it took an additional charge of SR1.13 billion said its statement to Riyadh's bourse that summarized its audited results.
This compares with a profit of SR219.8 million announced in January's unaudited earnings which included a fourth-quarter loss of SR2.28 billion.
The company has breached covenants on long-term loans with various lenders it said in the statement.
The company said it was in talks with lenders to amend the loan covenants and believed these negotiations would be successfully concluded in the second quarter of 2015.
Mobily said the covenant breaches has led to its long-term loans being reclassified as current liabilities which were SR15.3 billion at 2014-end.
Mobily's long-term loans totalled SR14.65 billion last year that mature 2017-2024 according to its unaudited results.
Earlier Mobily said it had removed CEO Khalid Al-Kaf who had been suspended since November pending the company's own investigation into its accounting problems.
Al-Kaf who had been CEO since 2005 and worked for Etisalat for 19 years previously had offered his resignation on Feb. 21.
Mobily did not say whether Mobily had accepted Al-Kaf's resignation merely that it discharged him from his position on Feb. 24.
The company put his deputy Serkan Okandan also chief financial officer of Etisalat in charge on an temporary basis following Al-Kaf's suspension. He has a mandate to remain at the helm until at least the end of March.
The announcement of Al-Kaf's departure came a day after the company announced that Chairman Abdulaziz Al-Saghyir had resigned citing health reasons.
Mobily said it will not pay a dividend for the fourth-quarter of 2014 its second successive quarter of no payouts to shareholders.
The suspension will run 'until Mobily discusses the reasons that led to a net loss amounting to SR913 million' after having earlier reported a preliminary net profit of SR220 million for the 12 months to December 31 the authority said in a statement.
According to Reuters Mobily's shares have fallen by 56 percent since an accounting scandal first broke in November wiping $9.1 billion from its market value.
Mobily made a loss of SR913 million in 2014 after it took an additional charge of SR1.13 billion said its statement to Riyadh's bourse that summarized its audited results.
This compares with a profit of SR219.8 million announced in January's unaudited earnings which included a fourth-quarter loss of SR2.28 billion.
The company has breached covenants on long-term loans with various lenders it said in the statement.
The company said it was in talks with lenders to amend the loan covenants and believed these negotiations would be successfully concluded in the second quarter of 2015.
Mobily said the covenant breaches has led to its long-term loans being reclassified as current liabilities which were SR15.3 billion at 2014-end.
Mobily's long-term loans totalled SR14.65 billion last year that mature 2017-2024 according to its unaudited results.
Earlier Mobily said it had removed CEO Khalid Al-Kaf who had been suspended since November pending the company's own investigation into its accounting problems.
Al-Kaf who had been CEO since 2005 and worked for Etisalat for 19 years previously had offered his resignation on Feb. 21.
Mobily did not say whether Mobily had accepted Al-Kaf's resignation merely that it discharged him from his position on Feb. 24.
The company put his deputy Serkan Okandan also chief financial officer of Etisalat in charge on an temporary basis following Al-Kaf's suspension. He has a mandate to remain at the helm until at least the end of March.
The announcement of Al-Kaf's departure came a day after the company announced that Chairman Abdulaziz Al-Saghyir had resigned citing health reasons.
Mobily said it will not pay a dividend for the fourth-quarter of 2014 its second successive quarter of no payouts to shareholders.
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