SADAFCO Assembly Approves SAR 554.7 million Transfer to Retained Earnings

Saudia Dairy & Foodstuff Co. (SADAFCO) announced on Wednesday the approval of the Extraordinary General Assembly Meeting (First Meeting) for the Company to purchase a number of its shares, up to a maximum of 2.7 million shares, and retain them as treasury shares.

It explained that the Board of Directors believes that the share price in the market is less than its fair value, while the purchase process will be financed from the Company’s funds, and the Board of Directors is authorised to complete the purchase transaction in one or multiple stages within a maximum 12 months from the date of the Extraordinary General Assembly’s Approval.

It noted that the Company will retain the treasury shares for a maximum 5 years from the date of the Assembly’s Approval, and after this period expires, the Company will adhere to the procedures and controls outlined in the relevant regulations and bylaws.

The Assembly also approved transferring the statutory reserve balance of SAR 162.5 million as in the semi-annual financial statements ending on June 30, 2024 to the retained earnings balance.

In addition to approving the transfer of the voluntary reserve balance amounting to 392.2 million Saudi riyals as in the semi-annual financial statements ending on June 30, 2024 to the retained earnings balance.