SADAFCO shareholders to vote on buyback of 2.75 mln shares on Nov. 18

Saudia Dairy and Foodstuff Co. (SADAFCO) shareholders are set to vote on repurchasing 2.75 million of its shares to be retained as treasury shares, during the extraordinary general meeting that will be held on Nov. 18, 2020

The repurchase process will be carried out since the board of directors believes the share price is less than its fair value, the company said in a statement to Tadawul.

The repurchase will be financed from internal resources.

Shareholders will authorize the board of directors to complete the process within a period not exceeding 12 months from the date of the general assembly’s approval. They will discuss retaining the repurchased shares for five years after which the company will follow the relevant rules and regulations.

On Oct. 19, the company board of directors gave the go ahead for the repurchase of up to 8.46% of the company's shares.

In addition, shareholders will also vote on appointing board members for the next three-year term starting April 1, 2021.

Shareholders will participate and vote on the meeting agenda items as of Nov. 11, 2020, through Tadawulaty system, as per the Capital Market Authority’s (CMA) circular issued on March 16, in line with the government’s efforts to prevent the spread of coronavirus.