SADAFCO Intends to Buy Back Up to 8.46% of Its Own Shares

SADAFCO Co. announced its Board of Directors’ resolution recommending to buy back up to 8.46% of its own shares (up to 2,749,750 shares) over the next twelve (12) months from the approval of the next EGM date as required by Article (12-4) of Regulatory Rules and Procedures issued pursuant to the Companies Law relating to Listed Joint Stock Companies, taking into consideration that the Treasury Shares of the Company must not at any time exceed 10% of the total shares.

The company said in a statement on Monday that “(1.539%) shares have already been purchased based on the approval by the EGM held on 11-04-1440H corresponding to 18-12-2018”.

The shares purchased will be held and used as Treasury Shares, it added.

“The shares purchased will be held and used as Treasury Shares as the Board of Directors of SADAFCO consider that the share price on Tadawul is lower than its fair value., the statement read.

The purchase of shares will be financed by SADAFCO from its own resources.

SADAFCO currently holds 1.539% (500,250) of its Ordinary Shares as Treasury Shares.

The company asserted that Extraordinary General Assembly consent must be obtained for the purchase, also conditions of Financial Appropriateness as provided in Paragraph Three of Article Twelve of the Regulatory Standards and Procedures issued pursuant to the company’s law shall be met.

Purchased shares shall not have voting rights in the General Assembly’s Meetings.

SADAFCO meets all Financial Appropriateness requirements according to the Auditor’s report as required by Article (12-3) of Regulatory Rules and Procedures issued pursuant to the Companies Law relating to Listed Joint Stock Companies.