Saudi Arabia's SITC goes into liquidation
Rebecca Hawkes | 08-05-2013
Communications firm Saudi Integrated Telecoms Company (SITC) will be dissolved under a royal decree after its licence was cancelled and the Gulf Kingdom's stock exchange in-formed.
SITC, which had financial backing from Hong Kong's PCCW, will be liquidated within the next six months, according to Al Arabiya. It had planned to roll out a long-term evolution (LTE) network for delivering data rich, high speed broadband services such as high definition television and mobile TV, but faced strong competition from the established players STC and Mobily.
Members of Saudi Arabia's Capital Market Authority, the Ministry of Commerce and Indus-try, and Communications and Information Technology Commission (CITC) will form a committee to oversee the liquidation.
"The mechanism by which the committee will dissolve the company and repay involved par-ties is still unknown," Mohammed al-Dhabaan, a lawyer and representative of the Business Software Alliances (BSA), is quoted as telling Al Arabiya. "The decree did not discuss what action is to be taken if the founders refuse to accept the decision," he added.
The company had embarked on a 300 million Saudi riyals initial public offering (IPO) in 2011, which was twice oversubscribed, according to reports. Then, last September SITC was fined 200,000 riyals by CMA for allegedly violating markets and listing rules.
Trading in SITC shares has been suspended since February, when CITC asked for the com-pany's operating licence to be terminated.