Riyadh — Mubasher: Etihad GO Telecom Company (GO Telecom) announced that its wholly owned subsidiary Alhulul Almuntilaqa Company (GO Money) received approval from the Saudi Central Bank (SAMA) to increase its capital.
GO Money will raise the capital from SAR 20 million to SAR 138 million, according to a bourse filing.
The capital hike amount is SAR 118 million that represents a 590% increase from the current capital level.
The expansion will be funded through a SAR 100 million additional cash contribution from GO Telecom, alongside the capitalization of SAR 18 million from previous additional capital contributions provided to the subsidiary.
This strategic move is intended to strengthen the financial position of GO Money and support the growth of its business operations and financing portfolio.
Go Telecom will maintain its 100% ownership stake in the subsidiary following the completion of the increase.
Meanwhile, GO Money is now set to finalize the necessary legal and regulatory procedures, including amending its articles of association and completing registration with relevant authorities.
The financial impact of this transaction will be reflected in the financial statements of both the parent company and its subsidiary in accordance with approved accounting standards.
