Dubai: etisalat on Monday said it has completed another stage in its participation in Saudi Arabia's telecommunications market by fulfilling the requirements of the Saudi Stock Market Authority in reducing its share in Mobily by 20 per cent.
etisalat's share in the company has been reduced to 26.25 per cent from 35 per cent.
The Saudi Stock Market Authority's regulation, which was part of the initial foundation plan of Mobily, states that the founding members of Mobily should reduce their shares in the company by 20 per cent, which accounts for a total of 100 million shares, within the first three years after foundation.
Each of the founding members has therefore reduced their stakes by 20 per cent to meet the requirements.
Transaction value
Mobily announced earlier that the value of the transaction reached 5.5 billion Saudi riyals, resulting in the founder shareholders benefiting by a total of 4.5 billion riyals to be shared between them.
The founders' shareholding in the company is now reduced to 60 per cent of the capital with the public holding the balance.
Mobily reached 11.1 million mobile subscribers by the end of 2007, and the number of subscribers in the mobile internet service exceeded 100,000 by the end of 2007.
