(MENAFN - Emirates News Agency (WAM))
DUBAI, 12th January, 2017 (WAM) -- Emirates Integrated Telecommunications Company, du, has announced that it has held a General Meeting 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 13th January, 2017. The company will allow a 30 day creditor notification period, expiring on 12th February, 2017, before proceedig with the capital reduction.
The proposed capital reduction will involve nominally cancelling 38,522,582 shares held by du and previously allocated to its employee long-term incentive plan. The share cancellation represents approximately 0.84% of du's total issued share capital which is currently 4,571,428,571 shares. Following the proposed cancellation, du's total issued share capital will consist of 4,532,905,989 shares.
The company's Board of Directors 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.