Vodafone Qatar Obtains Regulatory Approval
for Capital Reduction
October 21, 2018
Vodafone Qatar announced that it has obtained
all requisite regulatory approvals from the Qatar Financial
Markets Authority and the Ministry of Economy and Commerce to
proceed with the implementation of a capital reduction, after
obtaining the approval of its shareholders at the company
Extraordinary General Assembly on 19 March 2019.
The objective of the capital reduction is to
enable the company to extinguish its accumulated losses
associated with the amortization costs of the company’s
Telecommunications Networks and Services License. The operation
has no impact whatsoever on the value or the number of the
shares held by shareholders or on the cash position or financial
liquidity of the company.
The capital reduction is essentially a
balance sheet transaction effected by means of an accounting
adjustment all within the “Total Equity” section.
The share capital of the company is reduced from QR
8,454,000,000 (eight billion four hundred and fifty four
million) to QR 4,227,000,000 (four billion two hundred and
twenty seven million) by way of reducing the nominal value of
the shares of the company from QR 10 per share to QR 5 per
share.
The company’s license was previously extended
for an additional 40 years to 2068, which reduced the associated
amortization cost annually from QR 403 million to approximately
QR 84 million. This delivers the long term growth potential of
the company, attracts new investors and enables future payment
of dividends in line with the applicable law and the company’s
Articles of Association.
Commenting on this development, the Vodafone
Qatar’s CEO, Sheikh Hamad Abdulla Jassim Al Thani, said: “We are
delighted to now be able to proceed with the implementation of a
capital reduction that will undoubtedly play a significant role
in the growth of the company and deliver value to our
shareholders. We look to the future with confidence and
optimism, supported by a clear strategy and solid foundation for
the next stage of our journey. On behalf of the Board of
Directors, I’d like to thank the regulatory authorities and our
valued shareholders for their continued support.”
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