Sudatel says unable to pay dividends to external shareholders over forex restrictions

September 5, 2010 (KHARTOUM) – Sudan’s telecom company (Sudatel) revealed that it has been unable to pay dividends to external shareholders because of restrictions on foreign currency imposed by the central bank this year.

Sudan is facing a severe hard currency shortage which forced it to limit the sale of forex to travelers abroad. Furthermore, businesses such as Sudatel are required to get prior approval before making wire transfers abroad in foreign currency.

The authorities in the United Arab Emirates (UAE) have warned Sudatel that it will delist its stocks by Tuesday unless it specifies a date by which external shareholders will receive their dividends for last year. The telecom company approved dividend payment of $0.05 per share last May.

According to the rules of the UAE stock exchange, Sudatel has 60 days from dividend declaration date to pay shareholders or face suspension.

Sudatel responded by saying that it has completed all the requirements stipulated by the central bank for disbursing the funds and that external shareholders should expect to receive payment during the months of October and November.

“We are in the process of receiving the approval within the month of September and expect the transfers to commence in October and complete by November,” the company told the ADX according to ‘The National’ newspaper.

Sudatel, which is 26-percent state-owned, is featured on a list of 31 Sudanese companies barred from doing business with American firms.

(ST)