Saudi telco shut down over financial concerns
Saudi Integrated Telecom Company has authorisation to operate cancelled by gov't
The Saudi Integrated Telecom Company (SITC) has been shut down following two years of concerns over its financial health and trading violations.
In a statement published on the Saudi Stock Exchange, Tadawul, the Capital Market Authority said the Minister of Communications and Information Technology had cancelled the company's authorisation to operate.
Trading of SITC's shares already had been suspended since February.
A commission has been formed to liquidate the company, which offered high-speed mobile-broadband networks known as long-term evolution, within six months.
"The priority in the repayments of the company's obligations is to its non-founder subscribers and shareholders," the statement said.
The company launched an initial public offering in 2011 but has been in financial trouble for some time.
In September, it was fined SAR200,000 ($53m) by the CMA for violating markets laws and listing rules and failing to inform the Communication and Information Technology Commission in writing that it could not pay SAR2.8bn worth of financial obligations, according to the Saudi Gazette.