Regulator rejects Mobily's investors' compensation demands
13 October 2015 |
Saudi Arabia’s market regulator has rejected Mobily’s shareholders’ demand for compensation as a result of the sharp decline in its share price.
Saudi Arabia’s capital market authority (CMA) suspended trading in the company’s shares following a preliminary decision of a regulator panel investigating its restatement of over two years of earnings. The suspension has since been lifted.
Mobily said the committee for the resolution of securities dispute refused the claims for compensation as there was no proof that it had violated its statutory obligations.
Mobily, the second largest mobile operator in the UAE, is 27.5% owned by Etisalat. Mobily restated 27 months of earnings to March 31, 2015, cutting its total profits over the period by nearly $470 million.
The company first revealed there were errors in its financial statements in November last year when its shares fell 63%.