Dubai: Dubai-based telecom operator du said on Thursday in a statement that it held a General Meeting on Thursday where shareholders voted in favour of a Board of Directors’ recommendation to reduce the company’s capital.
The capital reduction is still subject to final approval from the Securities and Commodities Authority (SCA) as well as other relevant authorities.
Following the approval of the capital reduction, du intends to publish a notice to its creditors in two UAE Arabic-language daily newspapers on Friday, the telecom major said in a statement.
Du will allow a 30 day creditor notification period, expiring on February 12, before proceeding with the capital reduction.
The proposed capital reduction will involve nominally cancelling 38.522 million shares held by du and previously allocated to its employee long-term incentive plan. The share cancellation represents approximately 0.84 per cent of du’s total issued share capital.
Du’s total issued share capital is currently 4.57 billion shares. Following the proposed cancellation, du’s total issued share capital will consist of 4.53 billion shares.
The company’s board believes that the capital reduction will provide shareholders with an enhanced shareholding in the company and will result in du having a more efficient capital structure.
Shares of du closed nearly 1 per cent higher at Dh6.25, in a flat Dubai market. The Dubai index closed 0.03 per cent lower at 3,720.59.
Du is one of the two telecom provider in the UAE. The company has around 6.5 million mobile customers (almost 50 per cent market share), 555,000 fixed line subscribers, 180,000 home services subscribers and caters to over 70,000 businesses.
