SADAFCO shareholders to vote on 2.75 mln share buyback on Nov. 15

Logo of Saudia Dairy and Foodstuff Co. (SADAFCO)

Saudia Dairy and Foodstuff Co.’s (SADAFCO) shareholders are set to vote on a board recommendation to buyback up to 2.75 million shares, during the extraordinary general meeting (EGM) that will be held on Nov. 15.

The repurchased shares will be retained as treasury shares, as the board of directors deems that the stock market price is less than fair value, SADAFCO said in a statement to Tadawul.

The share buyback will be financed by the company’s cash resources, the company noted, affirming that the consent during the EGM must be obtained for the repurchase.

The board will be delegated to complete the purchase on one or several stages within a period of 12 months from the date of the EGM approval. Shares repurchased will be retained as treasury shares for a maximum period of five years from the EGM approval.

Last week, SADAFCO’s board of directors recommended the buyback of 8.46% of its shares, or up to 2.75 million shares, to be retained as treasury stocks, Argaam reported.