Etihad Atheeb Telecommunication Company (GO) announces the signing of a settlement agreement with TAWAL
29/10/2023
| Element List | Explanation |
|---|---|
| Announcement Detail | Etihad Atheeb Telecommunication Company (GO) announces signing an agreement with TAWAL Company to settle all balances and dues between the two parties related to the telecommunications towers sharing agreement for the period extending from the beginning of the dealings between the two parties until the date of October 31, 2023 AD. This agreement will entail the following: 1. It was agreed that the settlement amount until October 31, 2023, would be 48 million Saudi riyals in favor of the TAWAL Company, excluding taxes, divided into the following: - Transferring the ownership of the telecommunications towers, starting from the effective date of this settlement to the benefit of Etihad Atheeb Telecommunications Company for an amount of 30 million Saudi riyals. - Paying an amount of 18 million Saudi riyals in exchange for all obligations related to the sites sharing agreement. - Cancellation of the previous sites sharing agreement starting from the effective date of the settlement. - If the settlement as mentioned above amount is not paid during the grace period, this agreement will be considered void, and Etihad Atheeb Telecommunications Company is required to pay the total amount due for the site sharing agreement, amounting to 54 million Saudi riyals, in favor of TAWAL Company and the sites, including all its active and passive equipment and components shall be returned to TAWAL. The positive financial impact of this settlement will be reflected and recorded in the company’s accounts in the third quarter ending on December 31, 2023. |
