Custodian of the Two Holy Mosques King Abdullah has instructed authorities to pay compensation worth SR1.05 billion to shareholders of the Saudi Integrated Telecom Company (SITC) after it was declared bankrupt.

Shareholders will be paid compensation of SR30 per share in accordance with a royal decree issued on Monday, up SR5 from the closing price of SR24.3.

The Finance Ministry will take the place of shareholders other than the company’s founders as a result of the decree, Al-Eqtisadiah daily reported on Tuesday. The daily estimated the total compensation to be paid to the shareholders at SR1.05 billion.

Tadawul stopped exchange of SITC shares on its bourse on Feb. 6, 2013. Statements published on Tadawul said the company has 100 million shares and offered 35 million for public subscription.

Al-Mawarid Investment held the largest stake of 28 percent in the company, while the Public Investment Fund held five percent.

When the Capital Market Authority halted trading of SITC shares on the Saudi bourse, the company’s shareholders filed cases against the CMA, the Communications and Information Technology Commission (CITC) and the company’s board of directors.

The CMA stopped exchange of shares when it learned that the CITC had advised higher authorities to cancel the company’s license because of its failure to meet the conditions.

A royal decree was issued on Jan. 21, 2013 to take legal measures to cancel the license within 15 days if the company fails to pay SR1.009 billion and a guarantee amount of SR50 million.