The Saudi Integrated Telecom Company has announced its annual financial statements ending on 31/12/2011 (for the period between 14/6/2011, 31/12/2011) on Tadawul website on Saturday 8/5/1433H corresponding to 31/3/2012.

The auditor’s report included some reservations where the company asked to liquidate the two guarantees proposed to the Communication and Information Technology Commission in cash and in kind to what the company would own from the license and frequency band to provide fixed communication services in the Kingdom of Saudi Arabia. The company would pay the license fee and the financial outcome that would be written in the books as a company asset offset by the payment of the founding shareholders’ share of 650 million Saudi Riyals in the company’s capital. The remaining balance of 364.638.952 Saudi Riyals from the two guarantees should be written as funding from the founding shareholders.

Based on the Capital Market Law issued by the Royal decree number (M/30) and dated 2/6/1424H, the CMA is allowed to cancel any securities in the market or suspend its issuance or trading if necessary and the Listing Rules issued by the Board’s decision number (3-11-2004) and dated 20/8/1425H corresponding to 4/10/2004 which states that CMA can suspend or cancel the securities listing if it considered that the issuer operations’ level or its assets do not justify the continuous trading of its securities in the market.

In response, the CMA board has issued its resolution to suspend the trading the shares of the Saudi Integrated Telecom Company in the Saudi Stock Exchange (Tadawul) starting from Sunday 9/5/1433H corresponding to 1/4/2012 until the company amends its conditions.  After the expiration of six months from the date of this decision, and if the company has not taken the necessary actions to correct its current position, CMA will take the appropriate actions.