Savola buys back 341.7k shares worth SAR 16.5 mln for employee program

Savola Group completed the buyback of the intended number of its shares specified for the purpose of the Employees Long-Term Incentive Program (LTIP), the company said in a bourse statement.

A total of 341,675 shares were purchased based on the number of the qualified employees for the first tranche for 2020 in accordance with the program’s terms and conditions.

The value of the purchased shares amounted to SAR 16.51 million at an average purchase price of SAR 48.32 per share.

Savola completed the shares buyback for the first tranche of the LTIP in one phase, and no additional shares will be purchased within a maximum period of 12 months from the date of the extraordinary general assembly meeting (EGM) resolution.

The decision comes as part of the group’s efforts to attract and retain key talent and to motivate them to further strengthen their performance to achieve the company’s strategic objectives.

According to data compiled by Argaam, shareholders approved the buyback of 700,000 shares to be retained as treasury shares under Employees LTIP during the EGM held on April 29, 2020.

The board of directors was authorized to define the terms and policies governing this buyback program, and also to complete the repurchase process in a period of 12 months maximum from the general meeting date.

The buyback is financed from the company’s internal resources, and the company may retain its treasury shares without selling them or allocating them to its employees as Employees’ Shares Plan for a maximum period of five years.