Mubasher: Vodafone Qatar on Tuesday announced that trading on its shares will be suspended for one day on Thursday, 15 November on the Qatar Stock Exchange (QSE).
The decision is due to the QSE's regulatory requirements, as Vodafone Qatar's capital reduction will take effect on the same day, the telecom operator said in a filing to the QSE.
Trading in Vodafone's shares will resume on Sunday 18 November.
The telecom company obtained its shareholders’ approval during an extraordinary general meeting (EGM), in addition to all required regulatory approvals, to proceed with the implementation of the capital reduction.
In October, Vodafone Qatar received the necessary approvals from the Qatar Financial Markets Authority (QFMA) and the economy and trade ministry concerning its proposal to trim capital to QAR 4.22 billion from QAR 8.45 billion by reducing the nominal value of the company’s shares from QAR 10 per share to QAR 5 per share.
The decision will enable the company to extinguish its accumulated losses associated with the amortisation costs of the Company’s Telecommunications Networks and Services Licence.
Moreover, the capital cut will deliver the long-term growth potential for Vodafone Qatar and attract new investors, in addition to enabling future payment of dividends in line with the applicable law and the company’s Articles of Association.
It is worth noting that Vodafone Qatar achieved profits of QAR 75.42 million during the first nine months of 2018, against losses of QAR 227.74 million in the same period of the prior year.
By the end of Tuesday’s session, Vodafone Qatar’s stock declined 0.37% at QAR 8.02.
