RIYADH: Saudi Stock Exchange, Tawadul, said that it had suspended trading in Saudi telecommunication firm, Mobily’ shares.
Mobily, formally called Etihad Etisalat, announced that it had removed chief executive Khalid Al Kaf, who had been suspended since November pending an investigation into accounting practices at the company.
Earlier that month, it slashed its profits for 2013 and the first half of 2014 by a combined SAR1.43 billion ($381 million) because of what it said were accounting errors.
The earnings restatement prompted the bourse regulator, the Capital Market Authority, to launch an investigation into Mobily, while the company itself began its own probe as it suspended Kaf.
Arabian Business could not immediately confirm the suspension because the Tadawul website is down. It has not been reported elsewhere or announced on Tadawul’s social media platforms.
The suspension would run “until Mobily discusses the reasons that led to a net loss amounting to SR913 million”, the Capital Market Authority said in a statement, according to Saudi Gazette.
Mobily has put his deputy Serkan Okandan in charge on an acting basis, Reuters reported. Okandan is also chief financial officer of Abu Dhabi-listed Etisalat, which owns 27.5 percent of Mobily. He has a mandate to remain at the helm until at least the end of March.
